JK Lakshmi Cement gains after robust Q3 results

JK Lakshmi Cement rose 2.34% to Rs 395.50 at 10:00 IST on BSE after the company reported 31.15% rise in net profit to Rs 18.48 crore on 10.15% rise in total income to Rs 562.63 crore in Q3 December 2014 over Q3 December 2013.

The Q3 result was announced after market hours yesterday, 4 February 2015.

Meanwhile, the BSE Sensex was up 106.92 points, or 0.37%, to 29,005.97.

On BSE, so far 13,984 shares were traded in the counter, compared with an average volume of 42,403 shares in the past one quarter.

The stock hit a high of Rs 400 and a low of Rs 394.10 so far during the day. The stock hit a record high of Rs 430 on 21 January 2015. The stock hit a 52-week low of Rs 64 on 4 February 2014.

The stock had underperformed the market over the past one month till 4 February 2015, falling 4.59% compared with 3.57% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 3.73% as against Sensex's 3.67% rise.

The mid-cap cement manufacturer has an equity capital of Rs 58.83 crore. Face value per share is Rs 5.

JK Lakshmi Cement's operating profit rose 15% to Rs 82.1 crore in Q3 December 2014 over Q3 December 2013. The company could achieve this through volume growth of 6% in its production and sales.

After providing for interest and depreciation, the company's profit before tax (PBT) before exceptional item surged 81.35% to Rs 32.1 crore in Q3 December 2014 over Q3 December 2013. The company as a matter of abundant caution provided Rs 10 crore as an exceptional item towards the demand notice of sales tax department. The company believes it has strong case and matter would be decided in its favour, JK Lakshmi Cement said.

During Q3 December 2014, cost was impacted due to increase in Royalty of Limestone & coal prices. The company continued to improve its fuel efficiency and it was brought down further to 701 K.cal/Kg of Clinker in Q3 December 2014 from 724 K.Cal/kg of Clinker in Q3 December 2013. The company also managed to have better control over its logistic cost which was reduced by about 1.5%.

The company informed that trial runs of first phase of 2.7 million tonnes greenfield cement plant at Durg in Chattisgarh has commenced. The first phase of the project envisaging a cement capacity of 1.7 million tonnes is expected to commence next month.

Powered by Capital Market - Live News