JK Lakshmi Cement reported a 59% increase in net profits for the quarter ending 31 March 2014. Higher sales, increased operational efficiency and stronger prices all contributed to achieve net profit of Rs.52.91 crore, up from Rs.33.34 crore in the same period of the previous year.
Sales were up 18% y/y and prices rose 4%, bringing turnover to Rs.721.55 crore – a 21% increase from Rs.598.16 crore in the March quarter last year. In the full year FY13/14, turnover stood at Rs.2293.59 crore and operating profit reached Rs.346.23 crore. Shareholders are set to receive a 40% dividend for the year, pending approval at the AGM in September.
As with other Indian cement companies, JK Lakshmi Cement is anticipating a good year for the cement industry as the new government enters office. Cement demand increased by 2% between January and March. A representative for JK Lakshmi cement has said he would not be surprised if cement demand increased by 8 – 9% this year.
Edited from various sources by Katherine Guenioui