The Hindu Business Line : JK Lakshmi net dips 63% on high input cost

Mumbai, Oct. 20 Hit by the rising input cost, JK Lakshmi Cement has reported 63 per cent drop in net profit at Rs 27 crore in the second quarter ended September 30, against Rs 73 crore registered in the same period last year.

Turnover in the quarter under review was up 11 per cent at Rs 342.61 crore (Rs 310 crore). The company’s operating profit before depreciation was lower at Rs 56.36 crore.

The company’s production was up 10 per cent at 9.61 lakh tonnes on better capacity utilisation in the quarter against 8.71 lakh tonnes in the same period last year.

Ms Vinita Singhania, Managing Director, JK Lakshmi Cement, said the cement industry, especially in North, has been bearing the brunt of declining prices and sharp increase in the cost of inputs. The fuel cost increased by over 41 per cent due to increase in the costs of both coal and petcoke.

“However, with the fall in prices of oil in the international markets, the company expects its power and fuel cost to soften in the future,” she added.

The company’s ongoing expansion plans are progressing according to schedule which would raise cement capacity from 3.65 million tonnes (mt) a year to 4.75 mt by January-February 2009. The greenfield project for setting up of 2.7 mt at Durg in Chhattisgarh has also commenced.

The company shares on BSE dipped 6 per cent at Rs 36 on Monday.

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