Buy / Sell J. K. Cement share
JK Cement, one of the world's top manufacturers of white cement has asserted that the company is not for sale. This comes amidst the buzz of further consolidation within the cement industry after the Adani Group's acquisition of ACC and Ambuja Cements.
"Without doubt, No," COO Rajnish Kapoor told CNBC TV-18 when asked whether the company would be up for sale if a larger peer puts up an attractive offer.
In a channel check with cement dealers in August, Jefferies observed that cement prices continue to decline in most markets. JK Cement's Kapur said that prices in North India, where the company has significant exposure, have declined as much as Rs 35 per bag.
However, producers in East and West India have announced price hikes of as much as Rs 20 per bag in September, which makes Kapur hopeful that the company may be able to recover some of the losses witnessed during July and August. The company is hopeful of 4-5 percent volume growth in Q2.
JK Cement is worried about a potential drop in the EBITDA per tonne across the industry. Kapur anticipates a drop between Rs 300 - Rs 400 per tonne, subject to how companies undertake cost cutting measures, which can only alleviate the pressure by Rs 50 - Rs 75 per tonne.
The company is nearing the completion of its unit in Panna which has been delayed due to monsoons. "We are hopeful of starting the Panna unit by October and a Griding unit in Hamirpur by end-October or early-November," he said.
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