Buoyed by a three-fold increase in its net profit during the quarter ended September 30, JK Lakshmi Cement on Wednesday said it will invest Rs 650-700 crore to set up a greenfield plant in the next three years.
The company reported an over three-fold jump in the net profit after tax at Rs 73.5 crore for the quarter ended September 30 as compared to Rs 23.37 crore in the same quarter last year.
It also registered an increase of 65.03% in its turnover at Rs 309.82 crore in the second quarter of the current fiscal as against Rs 187.73 crore in the corresponding period a year ago.
The company is planning to set up a greenfield cement manufacturing plant in the next three years, entailing an investment of Rs 650-700 crore with installed capacity of 2-2.5 MT. "We will set up a greenfield plant with about 2-2.5 MT production capacity at an investment of Rs 650-700 crore within the next three years," JK Lakshmi Cement MD Vinita Singhania said.
The company, however, has not finalised any location for the proposed plant but said it was exploring various sites in more than three states in the eastern and southern parts of the country.
When asked about the funding of the project, JK Lakshmi Cement CFO Sudhir A Bidkar said, "It will be a mix of debt and equity at 1:1 ratio." The profit after tax of the company for the first six months rose to Rs 141.96 crore this fiscal from Rs 62.22 crore in the comparable period last year.
The turnover surged to Rs 621.34 crore for the H1 in the current year. JK Lakshmi Cement presently has seven ready-mix concrete plants with an annual production capacity of 3.4Mt.