JKCEMENT — earnings call

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Prepared remarks

LIMITED · MODERATOR:

MR. PRASHANT SETH – PRESIDENT (BUSINESS INFORMATION & INVESTOR RELATIONS), JK CEMENT

Moderator · Conference Operator

MR. VAIBHAV AGARWAL – PHILLIPCAPITAL (INDIA) PRIVATE LIMITED JK Cement Limited November 04, 2025

are ready. · They expect that all the foreign tours and all are undertaken during this quarter only, because in

They expect that all the foreign tours and all are undertaken during this quarter only, because in the season they would not like to travel.

So the expenses of this quarter are higher on this region.

Yes, going forward, it will, on a per ton basis, this would have an impact of about Rs.

100 a ton.

I think we should get, going forward, when with the higher volumes and the amount being a bit lower, so it will have an impact of about Rs.

100 a ton in the cost saving.

Harsh Mittal: · Sure, sir. Thank you. So, second question, as per our last guidance, we had a run rate of Rs. 300

Sure, sir.

Thank you.

So, second question, as per our last guidance, we had a run rate of Rs.

300 crores of incentives per annum, right?

Now, given the changes in the GST structure, what is the new run rate you feel for the next two years?

And with Jaisalmer coming in FY ‘28, how this

Right, right.

My last question, that when we announced the Jaisalmer expansion, we said that we will be going with 4 million tons of clinker and 7 million tons of grinding, 4 million tons of grinding, spread grinding unit.

So that has not been mentioned in the latest PPT.

Any update on that?

And so do we expect the commissioning in Q4 FY ‘28?

Sure, sir.

Thank you.

These were my questions.

Thank you.

Moderator · Conference Operator

Thank you.

We have our next question from the line of Ritesh Shah from Investec Capital.

Please go ahead.

Ritesh Shah

Yes.

Hi, sir.

Thanks for the opportunity.

Sir, a couple of questions.

One is what was the incentive quantum for this quarter?

Moderator · Conference Operator

Thank you.

Our next question is from the line of Pathanjali Srinivasan from Sundaram Mutual Fund.

Please go ahead.

Pathanjali Srinivasan

Thank you for the opportunity, sir.

I have a couple of questions.

Firstly, our lease distance has kind of increased over the last couple of quarters.

So, any sense on whether this could reverse from Q3 onwards because our plant commissioning and all of that is happening?

Moderator · Conference Operator

Thank you.

Our next question is from the line of Amit Murarka from Axis Capital.

Please go ahead.

Amit Murarka

Hi.

Thanks for the opportunity.

So, my first question is on regional sales split, if you can provide for one 1H FY ‘26 in terms of north, central, east, south?

Moderator · Conference Operator

Thank you.

The next question is from the line of Harshal Mehta from Asian Market Securities.

Please go ahead.

Harsh Mittal: · Sure, sir. Thank you. So, second question, as per our last guidance, we had a run rate of Rs. 300

Hi, sir.

Thank you for the opportunity.

Couple of questions.

So, my first question was on our strategy.

So, your views are on the growth margins and how do we plan to balance both of them going ahead?

Second question is on non-trade business.

So, how do we see that business going ahead for us?

And how do we see non-trade as a share moving as we start commissioning new capacities?

And lastly, just a clarification on Punjab and Rajasthan grinding units.

So, can we expect them to commission by 4Q FY ‘28?

So, these are my questions.

Thank you.

Just a clarification, like Punjab and Rajasthan grinding units, so can we expect them to be commissioned by 4Q FY ‘28?

Sure, sir.

And on non-trade business, if you can help.

Sure, sir.

Thank you.

Moderator · Conference Operator

Thank you.

Our next question comes on the line of Parviz Gavi from Nuvama Wealth Management.

Please go ahead.

Parviz Gavi

Hi, good afternoon and thanks for taking my question.

So, my first question is regarding our volume expectation for FY ‘26.

I think earlier we had started for about 10% volume growth.

So, are we maintaining that?

And second is, I mean, your view on prices post Q2. Thank you.

Moderator · Conference Operator

Thank you.

The next question comes from the line of Navin Sahadeo from ICICI Securities.

Please go ahead.

Navin Sahadeo

Good evening, sir.

And thank you for the opportunity.

A couple of questions.

So, it is been a little over a month into the new reduced GST regime.

So, I wanted to understand, if at a Company level we are seeing any premiumization trend.

In the sense, like, share of premium products being higher versus what they were in the previous quarter?

Any such initial trend or it is business as usual?

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Pinakin Parekh from HSBC.

Please go ahead.

are ready. · They expect that all the foreign tours and all are undertaken during this quarter only, because in

Thank you very much, sir.

Sir, my first question is, you mentioned there is some pressure on pricing.

But as we get out of the monsoon quarter into the busy season, hopefully trade sales pick up and you did also talk about higher premium product sales.

So on a blended basis, would you expect net realizations to be flat or down in Q3 versus Q2?

Got it, sir.

And sir, on demand, as we get out of the monsoon season into the busy season, we are seeing rains linger.

There is a Bihar election.

So do you see the demand being pushed out into Q4?

Or are you seeing signs of demand recovery in November?

Okay.

So for the industry demand, you would expect this year to average 7% - 8%?

Or you think it will be lower given how 1H has spread?

Got it.

Thank you very much, sir.

Moderator · Conference Operator

Thank you.

Our next question comes from the line of Shravan Shah from Dolat Capital.

Please go ahead.

Shravan Shah

Hi.

Thanks, sir.

At least I got the opportunity, after waiting one hour.

A couple of questions.

Sir, first of all, this paint EBITDA loss for this quarter is how much?

Moderator · Conference Operator

Thank you.

The next question is from the line of Pathanjali Srinivasan from Sundaram Mutual Fund.

Please go ahead.

Pathanjali Srinivasan

Thank you for the opportunity again, just couple of questions.

Our trade share has actually like, trade volumes have grown very well over the last year.

But non-trade seems to have been, almost flat, any reason why you see, this is happening?

JK Cement Limited November 04, 2025

Moderator · Conference Operator

Thank you.

The next question is from the line of Ritesh Shah from Investec Capital.

Please go ahead.

Ritesh Shah

Hi, sir, Just couple of questions, sir I just wanted to understand, with the GST reduction, we have already committed to the Jaisalmer plant, we would have certainly got into certain, I think what we have indicated earlier was customized incentive package with the state government.

With GST reduction, how does the underlying economic, change for us?

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, due to time constraints, we will now take the last two questions.

The first of which comes from the line of Amit Murarka from Axis Capital.

Please go ahead.

Amit Murarka

Hi, thanks for the opportunity, again.

So just on your cost reduction program, you had outlined certain savings.

Could you just refresh as to where do you stand on that right now and what is the exit rate expected in FY ‘26?

Moderator · Conference Operator

Thank you.

The next question is from the line of Rahul, an individual investor.

Please go ahead.

Rahul

Hello.

Thank you for the opportunity.

So my question is on the paints business, I have noted your inputs on the revenue EBITDA part.

So following-up on your guidance or your actual numbers last quarter, which was 30% gross margin.

Do you have any inputs on the gross margin for H1 or Q2?

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, we will take that as our last question.

I will now hand the conference over to Mr. Vaibhav Agarwal for closing comments.

Over to you, sir.

Vaibhav Agarwal

Yes, thank you.

On behalf of PhillipCapital (India) Private Limited, we would like to thank the management of JK Cement for the call and also many thanks to the participants for joining the call.

Thank you very much, sir.

Do conclude the call.

Thank you.

Moderator · Conference Operator

Thank you.

On behalf of PhillipCapital (India) Private Limited, that concludes this conference.

Thank you for joining us.

You may now disconnect your lines.

Questions and answers

Moderator · Conference Operator

Thank you very much.

We will now begin the question-and-answer session.

Our first question comes from the line of Harsh Mittal from Emkay Global.

Please go ahead.

Harsh Mittal: · Sure, sir. Thank you. So, second question, as per our last guidance, we had a run rate of Rs. 300

Thank you for the opportunity.

My first question is that the other expenses seem to be higher this quarter.

Can you guide us that what would be, in terms of rupees per ton, you feel that it would be reversed in the coming quarters?