JK Lakshmi Cement today reported a 31 per cent rise in net profit for October—December quarter at Rs 18.48 crore on higher sales and net sales realisation.
The company, which has over nine million tonnes per annum cement making capacity, had clocked Rs 14.09 crore net profit in the same quarter last fiscal, it said in a release.
“The profit is higher primarily because of two reasons — higher sales and net sales realisation. While the sales volumes were up by 6 per cent, NSR was up by around 4 per cent over the same quarter last fiscal,” said Shailendra Chouksey, whole-time director of the company.
Besides, he said the company has, as a matter of abundant caution, provided Rs 10 crore as an exceptional item towards the demand notice of sales tax department, though it believes that it has a strong case and matter would be decided in its favour.
Revenue of the company rose to Rs 618 crore from Rs 560 crore a year earlier buoyed by a six per cent rise in sales volume. Production too grew by six per cent during the period.
However, total expenses rose to Rs 509 crore from Rs 474 crore as cost was impacted during the quarter due to increase in royalty of limestone and coal prices.
For the nine-month period, buoyed by higher volume and better realisation, company’s turnover went up by 22 per cent to Rs 1,925 crore from Rs 1,572 crore.
JK Lakshmi said trial runs of the first phase of its 2.7 million tonnes Greenfield cement plant at Durg in Chhattisgarh has commenced. The first phase is expected to be commissioned next month, it said.