JK Cement has set a target of increasing production capacity to about 23 million tonnes per annum in next two years, reports Economic Times. "We will maintain and grow our market share in the short-term," the report said quoting JK Cement CEO Madhav Krishna Singhania.
For the first quarter ended on June 30, 2021, JK Cement had reported over a three-fold jump in its consolidated net profit to Rs 190.08 crore.
The company had posted a profit of Rs 49.94 crore in the April-June period a year ago, JK Cement said in a regulatory filing.
Cement industry to add CAPEX
Buoyed by healthy growth outlook, the cement industry is expected to add 80 million tonne (MT) capacity over the next three years through fiscal 2024, Crisil Ratings had said in July.
Accordingly, this will be the highest capacity addition seen in any block of three consecutive years, during the last 10 year period.
"Market share of top 10 players will increase as 70 per cent of the new capacities will be added by them," Crisil Ratings said.
"Further, lower project risks and funding of this capital expenditure through internal accruals will help keep their credit profiles strong."
Besides, the report said that after a flattish last fiscal, cement demand is set to grow strong at over 10 per cent on-year this fiscal, driven by revival in spending on infrastructure and housing segments.
