JK Lakshmi Cement (500380) Q4 24/25 earnings summary

Executive summary

• Demand improved significantly in H2 FY25, with industry growth estimated at 6.5%-7% and the company targeting above-industry growth for FY26.

• Brand rejuvenation and premium product launches (Green+ and PRO+) received positive market feedback, supporting top-line growth.

• Audited standalone and consolidated financial results for the quarter and year ended 31 March 2025 were approved, with auditors issuing unmodified opinions.

• A dividend of ₹6.50 per equity share (130%) was recommended for FY25, subject to shareholder approval.

• The company is pursuing a merger of three subsidiaries, pending regulatory approvals, with no effect yet in the reported results.

Financial highlights

• Consolidated revenue from operations for FY25 was ₹6,239.05 crore, down from ₹6,856.58 crore in FY24.

• Consolidated EBITDA for FY25 was ₹911.01 crore, compared to ₹1,120.26 crore in FY24.

• Non-cement revenue for Q4 was INR 151 crore with a 3% EBITDA margin; RMC revenue was INR 75 crore.

• Premium cement contributed 25% of consolidated sales in Q4.

• Cash and cash equivalents as of March were INR 1,150 crore.

Outlook and guidance

• FY26 volume growth guidance is at least 10%, outpacing the industry.

• Management expects a positive outlook for the cement sector, citing government infrastructure focus, higher budget allocations, and softening interest rates.

• Prices are expected to remain flat through June-July 2025, with demand holding steady.

• Cost reduction of INR 100-120 per ton targeted over the next 12-18 months via higher renewable energy, improved TSR, logistics optimization, and premiumization.

• Profitability improved sequentially due to higher volume, better product and market mix, and reduced fuel costs.