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JK Cement net profit grows by 38%

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JK Cement reported a healthy growth in earnings on the back of both higher volumes and realisations. In June 2012 quarter, the company reported a robust 38 per cent Y-o-Y growth in net profits.In the quarter ending June 2012, the company’s revenues grew by 21 per cent Y-o-Y to Rs 736 crore. This was mainly due to 15 per cent growth in despatch volumes and 5 per cent increase in realisation per tonne.However, on a sequential basis, despatch volumes were lower by 11 per cent in comparison to March 2012 quarter. The company was able to achieve higher volumes on Y-o-Y basis due to a weak monsoon that led to an increase in construction activity. However, it would be difficult for the company to maintain the 7 per cent growth in volumes in the coming quarters.

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