JK Lakshmi Cement has reported a 2.7% increase in stand alone net profit for FY14/15, reaching Rs.95.60 crore compared to Rs.93 crore in FY13/14. Total income from operations rose 12.18% y/y to Rs.2307.06 crore. However, 4Q figures were substantially depreciated, with net profit plunging more than 88% to Rs.6.05 crore and income down 11.41% at Rs.595.94 crore. The poor results are attributed to a one-time cost for sales tax exemption and marketing expenses, as well as unseasonal rains bringing down demand in rural areas.
The company commissioned 1.7 million t of its 2.7 million t greenfield project in Durg (Chattisgarh) during the quarter.
The company managed to contain variable costs by improving coal consumption to 704 kcal/kg from 726 kcal/kg in FY13/14. Waste heat recovery generation also improved, aiding energy costs. The company is optimistic that infrastructure investment will boost growth later in the year.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/18052015/jk-lakshmi-cement-has-poor-4q-859/