JK Lakshmi Cement Posts Rs 7.54 Cr Profit In Q2FY25 Amid Challenges

JK Lakshmi Cement (JKLC), a key player in the Indian cement industry and a flagship company of the JK Organisation, has reported its financial performance for the second quarter of the fiscal year 2025. Despite challenging market conditions, the company posted a standalone net profit of Rs 7.54 crore for the July-September 2024 quarter.

JK Lakshmi Cement standalone financial results for Q2FY25 reflect a challenging quarter, with sales volume dropping to 18.66 lakh tonnes compared to 21.71 lakh tonnes in the same period last year.

Net sales declined from Rs 1,452.62 crore to Rs 1,141.34 crore year-on-year. Profit before tax (PBT) saw a steep fall, coming down to Rs 5.72 crore from Rs 123.22 crore, while profit after tax (PAT) also decreased sharply to Rs 7.54 crore from the previous Rs 83.03 crore. Additionally, the net debt-to-Ebitda ratio increased from 0.19 to 0.58 times, indicating a rise in leverage. Vinita Singhania, the company's chairperson and managing director, attributed the downturn in profitability to a significant drop in sales realisations in primary markets.

Merger and Expansion Initiatives
JKLC has initiated a Composite Scheme of Arrangement to merge its subsidiaries, Udaipur Cement Works, Hansdeep Industries & Trading Company, and Hidrive Developers & Industries, into itself. The merger, aimed at boosting shareholder value, is currently awaiting regulatory approvals.

In its sustainability efforts, JKLC is enhancing its Thermal Substitution Rate (TSR) from 4 per cent to 16 per cent at its Sirohi plant and has achieved a 47 per cent share of renewable power in its energy mix for the quarter.

JK Lakshmi Cement is making significant strides in its capital expenditure (CapEx) initiatives. Udaipur Cement Works (UCWL) recently doubled its clinker capacity to 3 million tonnes with the commissioning of a second clinker line in October 2023. The company is also expanding its Surat Grinding Unit, increasing capacity from 1.35 million tonnes to 2.7 million tonnes, supported by a Rs 225 crore investment.

At the Durg Cement Plant, a dedicated railway siding is underway with a budget of Rs 325 crore. Further expansion at Durg includes a new clinker line and four cement grinding units totaling 4.6 million tonnes, alongside three additional grinding units across Prayagraj, Madhubani, and Patratu, with a total estimated cost of Rs 2,500 crore. These projects aim to bolster JKLC’s production capabilities and enhance logistical efficiency.