Interest burden hits JK Lakshmi; posts Q2 loss of Rs 14.95-cr

JK Lakshmi Cements today reported a standalone net loss of Rs 14.95 crore for the quarter ended September 30, mainly on account of additional burden of interest and depreciation cost on commissioning of Durg plant.
The company had posted a net profit of Rs 30.61 crore in the year-ago period, it said in a BSE filing.
Total standalone income of the cement maker rose by 13 per cent to Rs 645.73 crore during the quarter-under review from Rs 572.58 crore in the same quarter of 2014-15.
On the losses, the firm said in a statement: "Company's profitability suffered mainly due to additional burden of interest and depreciation on account of commissioning of 1st phase of company's greenfield cement plant at Durg in March 2015."

Besides, its cost also shot up due to the newly imposed contribution to District Mineral Fund amounting to Rs 8.57 crore for the period of six months in this quarter.
JK Lakshmi Cement said that "sales volume as well as prices was impacted by subdued market conditions".

However on a quarter-on-quarter basis, the company has managed to trim its losses. It had reported a standalone net loss of Rs 23.48 crore for the quarter ended June 30, 2015.
"Company has been able to bring down the coal consumption to 700 K.Cal/Kg of Clinker in September quarter from 706 K.Cal/Kg of Clinker in July-September 2014. Work on company's two grinding units projects in Gujarat and Odisha are progressing satisfactorily," it said.

Shares of JK Lakshmi Cement today fell by 2.39 per cent to settle at Rs 367.05 a piece on BSE.