JK Lakshmi Cement Apr-Jun net down 69% to Rs 16 cr

JK Lakshmi Cement today clocked 68.77% decline in the first quarter net profit at Rs 15.70 crore, on lower sales and realisation.

The company had logged net profit of Rs 50.28 crore in the April-June period of last fiscal 2012-13.

"Fall in profitability and sales is attributed to decline in production by 14% and lower sales realisation by 5% consequent to slow down being experienced by cement industry," the company's Whole-Time Director Shailendra Chouksey said.

Cement production of the company was down to 11.5 lakh tonnes during the quarter because of subdued demand in the country's Northern and Western parts where JK Lakshmi Cement mainly operates. Realisation was down due to lower price of the building material.

Total income of JK Lakshmi Cement fell to Rs 457.04 crore from Rs 534.09 crore a year ago. It sold 12.25 lakh tonnes cement during the quarter. Its expenditure stood at Rs 422.18 crore as against Rs 444.57 crore a year ago.

Chouksey said the price of the building material may remain stable with the onset of the monsoon, but chances of going up are there by September-end.

In a statement, JK Lakshmi said work on the ongoing new 27 lakh tonnes per annum project at Durg in Chhattisgarh has resumed after stoppage of about 3-4 weeks consequent to local disturbances in April.

The company has recently undertaken two more projects - augmentation of its grinding unit at Jhajjar by another 6.5 lakh tonnes and augmentation of its clinker capacity by 3.3 lakh tonnes per annum. Both these projects are expected to be completed by the end of the current financial year, it said.