JK Lakshmi Cement tanks 4% after reporting net loss of Rs 19 cr in Q2

JK Lakshmi Cement's share price slumped 3.79 per cent at Rs 770 per share on the BSE in Thursday’s intraday trade after the company reported a weak second quarter earnings for the financial year 2024-25 (Q2FY25). 

JK Lakshmi Cement reported a net loss of Rs 19.24 crore in the September quarter of FY25, as against a net profit of Rs 95.87 crore in Q2FY24. The company’s revenue from operations was down by 21.6 per cent in Q2FY25, totaling Rs 1,234 crore versus Rs 1,574 crore in the same quarter last year.  

The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) stood at Rs 89.36 crore, reflecting a 59 per cent year-on-year decline versus Rs 217.26 crore recorded in Q2FY24. Ebitda margin came in at 7.2 per cent for the quarter under review versus 13.8 per cent in the same quarter last year.  

For the quarter of July-September 2024, the company recorded a sales volume of 24.77 lac tonnes, generating net sales of Rs 1,234.29 crore. This marked a decline from the same quarter last year, where the company achieved a sales volume of 27.32 lac tonnes and net sales of Rs 1,574.53 crore. 

Vinita Singhania, chairperson & managing director (CMD), JK Lakshmi Cement said, "The profitability of the company for the quarter has been impacted due to sharp drop in Sales Realisation in our primary markets.”

Capacity Expansion

The company is expanding its cement production capacity with several key projects. At its Surat Grinding Unit, capacity will increase from 1.35 million tonnes to 2.7 million tonnes, costing Rs. 225 crore, funded through Rs. 150 crore in term loans and internal accruals, the company said in a statement.  

A railway siding is being developed at the Durg Cement Plant at a cost of Rs. 325 crore, with Rs. 225 crore funded by debt. Additionally, at Durg, Chhattisgarh, the company is adding a clinker line (2.3 million tonnes per annum) and four cement grinding units (4.6 million tonnes per annum).  

Three split-location grinding units will also be established in Prayagraj, Madhubani, and Patratu, totaling 3.4 million tonnes per annum. The total cost for these expansions is Rs. 2,500 crore, with Rs. 1,750 crore funded through term loans and the balance via internal accruals, the company said. 

JK Lakshmi Cement share price history

The company’s stock has underperformed the market year to date as it has fallen 13.9 per cent, while gaining 0.5 per cent in the last one year. In comparison BSE Sensex has risen 10.9 per cent year to date and 23.4 per cent in a year. 

 

The company has a total market capitalisation of Rs 9,095.90 crore. Its shares are trading at a price to earnings multiple of 21.89 times and at an earning per share of Rs 36.56. 

 

At 9:56 AM; the stock of the company surged 3.37 per cent at Rs 773.35 a piece. By comparison, the BSE Sensex slumped 0.54 per cent at 79,940.59.