In 3Q15, JK Lakshmi Cement recorded a 20% growth in the production and sales of cement. This increase was largely due to the commissioning of the Durg plant in March 2015.
Sales volumes, along with prices, were impacted by subdued market conditions, which resulted in gross sales rising to Rs.723.30 crore from Rs.638.35 in 3Q14, an increase of only 13%.
The newly imposed contribution to District Mineral fund, which came to Rs.8.57 crore for sixth months, also helped to increase the company’s costs for the quarter. The PBIDT of the company, at Rs.72.61 crore, improved by 32% from 2Q15, but were 20% lower than in 3Q14. The company’s profitability suffered mainly due to the additional burden of interest and depreciation, following the first phase of commissioning for the company’s Greenfield cement plant at Durg.
The company incurred a loss of Rs.22.10 crore at PBT level during the quarter. This marginally improved its position, with 34.91 crore being lost in the previous quarter, but remains substantially below the profit of Rs.35.04 crore recorded between July and September 2014. The company had to pay Rs.5.28 crore for an exceptional instance, mainly due to the contribution made to District Mineral Find for the previous year.
After providing tax, losses at PAT level stood as Rs.14.95 crore in 3Q15, compared with Rs.30.61 crore the previous year.
The work on the company’s two grinding unit projects in Gujurat and Odisha are progressing satisfactorily.
Adapted from press release by Rebecca Bowden