JK Lakshmi Cement expects demand to pick up from the second quarter of this fiscal with the Narendra Modi-led NDA Government rolling out its plan.

Speaking to Business Line Shailendra Chouksey, Director, said the demand right now is not bright but expectations are that the new government would take at least a month or so before it restarts the infrastructure projects that are stuck at different stages.

The company is focusing on reducing variable cost by implementing various projects to reduce its production cost by ₹150-200 a tonne by the end of this fiscal. It recently completed a 6- MW solar project in Rajasthan.

JK Lakshmi also expects work on 0.6 million tonne grinding unit to start soon.

The project was not moving as the Gujarat Government has not formed the panel to give the environment clearance. “With elections coming to an end, we expect to make the presentation before the environment panel and receive approval within a month or so,” he said. The grinding unit is expected to be completed in a year’s time.

The company has increased its production capacity from 5.3 million tonnes a year to 6.65 mt a year.

It will further increase to 9.5 mt a year with the greenfield project of 2.7 mt a year going on stream in October.

Along with the Surat grinding unit, the capacity is expected to touch 10 mt a year by July next year, he said.

JK Lakshmi Cement expects to combat the increase in power and fuel cost by improving operational efficiency.

The company has managed to protect its profit margin by passing on the mark up in operational cost to buyers.

Its net profit in the March quarter was up 59 per cent at ₹59 crore, despite providing ₹18 crore for litigation over old duties and cess. Sales were up 21 per cent to ₹722 crore.

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