JK Lakshmi Cement posts Q1 net loss of Rs 23.48 crore

NEW DELHI: JK Lakshmi Cement today reported standalone net loss of Rs 23.48 crore for the quarter ended June 30, hit by a subdued market and higher costs.

It had posted net profit of Rs 40.45 crore in the April- June period of last fiscal, the company said a statement.

Total standalone income of the company fell by 2 per cent to Rs 590.75 crore in the first quarter of the current fiscal, from Rs 600.42 crore in the same quarter of 2014-15 due to lack of demand.

The company’s total expenses rose by 12 per cent to Rs 579.27 crore from Rs 515.25 crore in the reported quarter.

“Due to subdued market conditions, demand is not picking up and this has affected prices. The prices have gone down by Rs 30-35 per bag in North India, Gujarat and Rajasthan. It has impacted out realisation, which has fallen to nearly Rs 500 per tonne impacting profit,” JK Lakshmi Cement’s whole time Director Shailendra Chouksey told PTI.

The company also bore the additional burden of interest and depreciation to the tune of Rs 37.58 crore on account of commissioning of first phase of its greenfield cement plant of 1.7 million tonnes (MT) at Durg in March 2015, the firm said in a statement.

It has incurred a loss of Rs 34.91 crore at PBT level in the April-June quarter as against profit of Rs 49.65 crore in the year-ago period.

After providing for tax, the losses at PAT level stood at Rs 23.48 crore in the June quarter this fiscal. Company has shown Rs 5.45 crore as an exceptional items which represent additional expenditure incurred on stabilisation of its green field plant.

JK Lakshmi Cement continues its focus on reduction of the cost. It has further brought down the coal consumption to 685 K Cal/kg of clinker in June quarter this fiscal from 714 K Cal /kg of clinker in the same quarter of 2014-15 at its Sirohi plant.

The work on company’s two split location plants is progressing satisfactorily. Gujarat’s second grinding unit is expected to come into stream by the end of this fiscal. The work at Udaipur Unit, the subsidiary company, is also progressing well.

Shares of the company today fell by 2.08 per cent to Rs 355.05 apiece on the BSE.