J K Cement Limited shares soared to a new all-time high this morning, rising to Rs 1196 on the National Stock Exchange (Rs 1194.20 on BSE), on buoyant fourth quarter results and the board's decision to expand capacity.
The company reported a net profit of Rs 91.37 crore for the quarter ended March 2017, up 30.42% over its net profit in the corresponding quarter last year. Net sales increased 7.74% to Rs 1018.86 crore, over the year-ago quarter.
For the year ended March 2017, J K Cement's net profit was up as much as 151.21% at Rs 259.58 crore, compared to a year-ago. Net sales increased 5.18% in the year. The board has recommended a dividend of Rs 8 per equity share for the financial year ended 31 March 2017.
At the meeting held recently, the company's board of directors decided to raise upto Rs 500 crore by issuing secured/irredeemable non-convertible debentures in one of more series/tranches on private placement basis at an interest rate that will be determined by the prevailing money market conditions at the time of borrowing subject to the approval of the shareholders.
Further, it was decided to expand the wall putty production capacity from existing 2 lakh MT per annum to 4 lakh MT per annum at J K White, Katni.
The board also took note of increase in clinker production capacity by 3.30 lakh tons per annum in Rajasthan grey cement plants by cooler modification and de-bottlenecking/up-gradations with the total cost of approximately Rs 50 crore.
JK Cement shares are currently at Rs 1121, up 4.7% from last week's closing price. On the National Stock Exchange, nearly 2.6 lakh shares have changed hands so far at the JK Cement counter in the session. On BSE, the counter has clocked a volume of around 35,000 shares so far in the session.
The stock price has more than doubled in the last twelve months. The stock was hovering around Rs 570 in mid-May 2016.
