JK Lakshmi Cement hardens after robust Q3 numbers

JK Lakshmi Cement rose 1.20% to Rs 375 after consolidated net profit soared 447.90% to Rs 50.41 crore on a 3.8% rise in net sales to Rs 1,077.92 crore in Q3 December 2019 over Q3 December 2018.

Consolidated profit before tax surged 2285.80% to Rs 77.06 crore in Q3 December 2019 as against Rs 3.23 crore in Q3 December 2018. Tax expense jumped 169.80% to Rs 14.30 crore from Rs 5.30 crore in corresponding quarter, previous year. The Q3 earnings were announced after trading hours yesterday, 28 January 2020.

During the quarter, the firm was able to curb its logistic cost substantially as well as improve its product mix to cut down its cost further. During this period, the fuel prices have also softened. These cost reductions enabled the company to post a strong Earnings before interest, tax, depreciation and amortization (EBITDA) during Q3 December 2019. The EBITDA grew 48.48% to Rs 166.59 crore in Q3 December 2019 from Rs 112.19 crore in Q3 December 2018.

Meanwhile, the company's board approved raising external commercial borrowing (ECB) up to $25 million in one or more tranches subject to requisite approvals.

JK Lakshmi Cement (JKLC) manufactures and markets cement, clinker, and cementitious products like RMC and AAC Blocks.

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