JK Lakshmi Cement Ltd has reported a turnover of INR4.41bn in the first quarter of the financial year 2011-12 an increase of 21% over the corresponding quarter of the previous year. Company’s Operating Profits were also better at INR80.21 crores as against INR581.1m, registering a growth of 38%. Profit Before Tax at INR336.4m were 38% higher over INR243.8mn achieved in the corresponding quarter of the previous year.
Company’s Managing Director, Smt. Vinita Singhania, has said that company’s marketing zone showed almost a flat growth as against 5.3% growth registered in FY-11. Company could, however, increase its despatches by 10% during the quarter. She, however, added that continued lull in the demand is a matter of concern and it is bound to have its repercussion on the prices in the coming quarters. The fuel prices continue to rise unabated. In fact, the company would have registered much better margins had it not been for the increase in the fuel and logistic costs, which also registered substantial increase during the quarter.
Despite the cement market not showing much enthusiasm in the last 3-4 quarters the company continue to forge ahead with its expansion plans. The work at its Split Location Grinding unit in Haryana and 2.7Mt greenfield project at Durg are progressing satisfactorily.