BackJK Lakshmi Cement Q1 Results: Net profit drops 30% to ₹79 cr, revenue up 5%; board approves fundraising via NCDs
JK Lakshmi Cement Q1 Results: The cement manufacturer's revenue from operations in the first quarter of current fiscal stood at ₹1,730.25, registering a growth of around five per cent, compared to ₹1,654.14 crore in the year-ago period.
PremiumJK Lakshmi Cement Q1 Results: JK Lakshmi Cement announced its April-June quarter results for fiscal 2023-24 (Q1FY24) on July 27, reporting a decline of 30 per cent in consolidated net profit at ₹79.7 crore, compared to ₹115 crore in the corresponding period last year. The cement manufacturer's revenue from operations in the first quarter of current fiscal stood at ₹1,730.25, registering a growth of around five per cent, compared to ₹1,654.14 crore in the year-ago period.
The company's consolidated net sales in the June quarter stood at ₹1,730.25 crore, compared to ₹1,654.14 crore in the year-ago period. The sales volumes were 32.05 lakh tonnes in the first quarter, compared to 30.32 lakh tonnes in the corresponding period last year.
On the operating front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter stood at ₹196.3 crore, registering a decline of ₹53.9 per cent, compared to ₹425.9 crore in the corresponding period last year. Margin came in at 11.3 per cent as against 25.8 per cent in the year-ago quarter.
JK Lakshmi Cement achieved a cement capacity utilisation of 85 per cent, while the clinker capacity utilisation was 97 per cent during the June quarter.
In order to increase its share of renewable power, the JK Organisation's flagship company has tied-up with a private player for sourcing 40 MW of solar power plant for its Durg cement plant. After the implementation of the solar power project, the share of renewable energy would go up to 80 per cent for the Durg plant and to around 50 per cent for the company.
“The operations of the company during the quarter were impacted by unprecedented rain and cyclone Biparjoy in the state of Gujarat and Rajasthan,'' said Vinita Singhania, Vice Chairman & Managing Director, JK Lakshmi Cement.
The cement manufacturer announced that work on the expansion project at its subsidiary, Udaipur Cement Works Ltd (UCWL) of 2.50 million tonnes cement plant is underway.
The project is expected to be commissioned in the second quarter of FY25 as per the original schedule. The trial runs for clinkerisation line of 1.50 million tonnes per annum has started. UCWL has completed the rights issue of Rs. 448 crore in the current month and the proceeds of the rights issue are to be deployed in the ongoing expansion project of UCWL, said JK Lakshmi Cement.
Fundraising through NCDs
The company's board proposed raising of funds through the placement of unsecured/secured non-convertible bonds or debentures (NCDs) of upto ₹2,500 crore, subject to the approval of shareholders.
‘’Fund raising through term loan(s)/ issue of debt securities/ bonds or any combination thereof, in one or more tranches, upto an amount of ₹2, 500 crore to part finance the company's ongoing projects and for funding its various growth opportunities including inorganic growth, subject to requisite regulatory/ statutory approvals,'' said JK Lakshmi Cement in a regulatory filing to the stock exchanges.
Acquisition
The board also approved 100 per cent equity shareholding of real estate firm Hidrive Developers and Industries Pvt. Ltd (HDIPL) by JK Lakshmi Cement at a cost of ₹16.33 crore. The indicative time period for the completion of the acquisition is on or before August 31. After the acquisition of the shares, HDIPL will become a wholly-owned subsidiary of JK Lakshmi Cement.
On July 27, shares of JK Lakshmi Cement settled 0.10 per cent lower at ₹668.10 apiece on the BSE.
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