Thought leadership: Rajnish Kapur, COO of JK Cement sheds light on rising costs

Thought leadership: Rajnish Kapur, COO of JK Cement sheds light on rising costs

by 5paisa Research Team Last Updated: Mar 28, 2022 - 06:31 pm 33.4k Views
Listen icon

The company aims to for gradual increase in its prices.

One of the sectors that has been badly hit by the rising commodity or input prices is cement sector. In last couple of months, the stock prices have come down significantly as the commodity prices continue to put pressure on the cement manufacturers. Rajnish Kapur, COO of JK Cement has expressed his views on the concern.

He feels that the cost increase are happening in an unprecedented manner. Rising coal prices have affected the operations. But, March being one of the best months of the year for the cement sector, they have witnessed a demand uptick post state elections. As the company has a strong hold in North India, it has witnessed strong sales there.

However, the rising costs cannot be ignored. They had been already high till Q3 and the geopolitical conditions have added on it. The company plans to tackle this situation by making price hikes gradually over the time in the next couple of months. That way, it plans to at least maintain the EBITDA margins which had fallen to 18% in Q3.

Talking about the EBITDA per ton of cement production, it was around Rs 1,100 per ton which had fallen from the average levels of Rs 1400-1500 per ton. The COO feels that the going into Q4, the number would be more or less similar to Q3. However, he estimates that the Q1 FY23 would be subdued and when compared the Q1 FY23 performance with Q1 FY22, where the company had witnessed strong margins and sales, the Q1 FY23 might see a significant drop.

He also talked about the company’s venture into the paints segment where the company is set to invest Rs 600 crore over five years. He feels that it’s a strategic action by the management and that the company is foraying in a phased and disciplined manner.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.