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JK Lakshmi Cement withstood the impact of demonetisation in the third quarter of financial year 2017 due to higher sales before the government decision. Whole-Time Director Shailendra Chouksey said that the first half of the quarter had shown better results before the government derecognised high value currency notes.
He said, “The sale after demonetisation fell by nearly 12 per cent mostly on account of lower off-take by individual home builders.”
Despite the hurdles, overall sales grew by 4 per cent in the quarter over the corresponding period in the previous financial year, according to a press statement.
Cement production grew by 6 per cent largely on account of stabilisation of company’s cement plant in Durg this year. The company's turnover rose by 3 per cent to ₹750.92 crore, while operating profit margin (OPM) grew by 12 per cent in the quarter compared to the same period in the last financial year.
Chouksey added that capacity of the company’s plant in Durg will be hiked from 1.8 million tonnes to 2.7 million tonnes by March.
The company's project in its subsidiary Udaipur Cement is near completion and is likely to be operational by March. The company's total capacity, including Udaipur Cement, will be increased to 12.5 million tonnes by the end of this fiscal.
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