JK Cement to increase cement costs in Q4

24 Dec 2021 CW Team

JK Cement plans to increase the cost of cement in the fourth quarter after November and December witnessed a price drop, Rajnish Kapur of JK Cement told the media.

There was a 4% drop in costs in November, and December observed a further dip, said Kapur.

He said that Q4 is the time, and the cost increase does happen historically, additionally, because demands are at their peak. In November, they witnessed a demand decline of about 4 to 5% and a price decline of approximately 4%.

After a good growth in October, November witnessed a 20-30% drop in demand month-on-month, Kapur said, adding that it is not normal. Their margin has noticed some pressure, but it is not severe. In the next few months, however, the firm is upbeat about the demand.

The firm aims at an 8-10% volume increase in FY22. Yet, it has cut the volume growth guidance from 20-25% to 8-10% in FY22.

JK Cement shares dipped more than 2.5% at Rs 3,479 on the National Stock Exchange.

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