JK Cement has closed financial year 2019-20 (FY20) with a 23 per cent growth in net profit at Rs 400 crore as against Rs 325 crore in FY19. The net sales rose by 10 per cent to Rs 5,397 crore, as compared to Rs 4,919 crore in the same period last year, JK Cement said in a regulatory filing.
For the fourth quarter ended March 31, 2020 (Q4 FY20), the company reported nearly 100 per cent decline in its profit after tax (PAT) at Rs 0.23 crore as against Rs 150 crore in Q4 FY19. Revenue from operations fell marginally by 1 per cent to Rs 1,477 crore compared to Rs 1,492 crore in the same period last fiscal.
Operating expenses of the company decreased by 7 per cent to Rs 1,131 crore in Q4 FY20 versus Rs 1,213 crore in the corresponding period last year. For FY20, operating expenses rose by 3 per cent year-on-year to Rs 4,283 crore.
During January-March quarter of FY20, EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) stood at Rs 346 crore compared to Rs 279 crore in Q4 FY19, registering a growth of 24 per cent. For financial year 2019-20, it jumped 46 per cent year-on-year to Rs 1,181 crore.
As on March 31, 2020, the gross debt of the company stood at Rs 2,621 crore and net debt at Rs 1,617 crore.
The company said that work for its grinding unit at Balasinor was stopped due to lockdown and migration of labour on account of COVID-19 pandemic. "The work has restarted with civil manpower being arranged from local sources and it is expected to complete by October 2020 with limited manpower," it added.
In a separate development, JK Cement's board has recommended raising funds up to Rs 500 crore in one or more tranches by issuance of non-convertible debentures (NCDs) on private placement basis. The NCDs will be issued at an interest rate that will be determined by the prevailing money market conditions at the time of borrowing, it added. The proposal is subject to shareholder approval.
The board of the company has also declared payment of interim dividend at the rate of Rs 7.50 per equity share (i.e. 75 per cent) of Rs 10 each for the financial year 2020.
Ahead of the earnings announcement, shares of JK Cement ended Wednesday's trade at Rs 1,220.05, up 3.84 per cent higher, against previous closing price of Rs 1,174.90 on the BSE.