JK Lakshmi Cement Posts 31% Rise in Q3 Profit

New Delhi: JK Lakshmi Cement on Wednesday reported a 31 per cent increase in net profit at Rs 18.48 crore for the quarter ended December, 2014, on higher sales and net sales realisation.

The company, which has an annual cement-making capacity of over nine million tonnes, had registered a net profit of Rs 14.09 crore for the corresponding period a year ago, it said in a release.

"The profit is higher primarily because of two reasons - higher sales and net sales realisation. While the sales volume 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 6 per cent rise in sales volume. Production also grew by 6 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 green field cement plant at Durg, Chhattisgarh has commenced. The first phase is expected to be commissioned next month, it said.