JK Lakshmi Cement reports higher Q4 profit, sees positive outlook

Cement major JK Lakshmi Cement Ltd (JKLC) has reported a consolidated net profit of ₹193.17 crore for the January-March quarter, up from ₹162.06 crore in the same period last year. This increase was driven by higher sales volume and improved operational efficiencies. However, the company's consolidated profit for FY25 stood at ₹301.99 crore, down from ₹487.87 crore in FY24.

JKLC’s consolidated net sales for FY25 reached ₹6,192.62 crore, a decrease from ₹6,788.47 crore in the previous fiscal year. In the fourth quarter, sales surged to ₹1,897.62 crore from ₹1,780.85 crore in the corresponding period of the previous year.

Vinita Singhania, Chairperson & Managing Director of the company, stated, "The profitability of the company improved sequentially due to higher volume, a better product and market mix, and a reduction in fuel costs."

The company is currently implementing a phased project to enhance its thermal substitution rate (TSR) from 4% to 16% at its Sirohi Cement Plant as part of its Green Initiatives. The share of renewable power in the company’s power mix was 50% for the quarter.

JKLC is also expanding its cement grinding capacity at its Surat Grinding Unit from 1.35 million tonnes to 2.7 MT. This project is expected to cost ₹225 crore, funded through term loans from banks amounting to ₹150 crore and the remaining from internal accruals.

Additionally, the company is setting up a railway siding at its Durg Cement Plant at a cost of ₹325 crore, which will be funded through a debt of ₹225 crore and the balance from internal accruals.

JKLC is also expanding the clinker capacity at its integrated cement plant in Durg, Chhattisgarh, by adding a 2.3 MTPA clinker line and four cement grinding units with a total capacity of 4.6 MTPA. It is also establishing three split location cement grinding units with an aggregate cement grinding capacity of 3.4 MTPA at Prayagraj in Uttar Pradesh, Madhubani in Bihar, and Patratu in Jharkhand. This expansion project is likely to cost ₹2,500 crore and is proposed to be funded through term loans from banks of ₹1,750 crore and the remainder through internal accruals.

Looking ahead, JKLC stated that considering the government’s continuous focus and higher budgetary allocation towards infrastructure development, along with various initiatives for housing and road development, and the softening of interest rates, the outlook for the cement sector is "positive" in the coming year.

JK Lakshmi Cement shares closed 0.89% down at ₹866.60 on the BSE.