Quarterly Results

For the quarter ended Sep’06 JK Lakshmi Cement has reported a 30% growth in net sales to Rs 163.21 crore despite heavy rains affecting company’s despatches & production. The operating profit margins of the company have improved by whopping 760 basis points to 24.2% due to fall in raw material cost, stores & packing cost, power & fuel cost, staff cost, and other expenses as a percentage of sales (net of stock adjustment) to 10.41%, 6.53%, 28.39%, 6.14% and 7.55% respectively. (Last year: 11.32%, 8.77%, 32.94%, 6.15% and 9.84%). Transport, Clearing & Forwarding charges as a percentage of sales has increase to 16.06% from 14.21% due to ban on overloading and increase in diesel prices. Due to improvement in margins and surge in revenue operating profit has jumped by 89% to Rs 39.56 crore.

Other income has declined by 5% to Rs 0.7 crore while interest expenses has increased to Rs 5.75 crore as compared to Rs 0.31 crore in the corresponding quarter in previous year. Provision for depreciation has declined by 13% to Rs 10.94 crore. PBT have skyrocketed by 172% to Rs 23.57 crore. Provision for tax has for the quarter stood at Rs 0.2 crore as compared to Rs 0.15 crore in last year, up by 33%. Finally, PAT of the company have reported growth of 174% to Rs 23.37 crore.

Half-Year Results

For the half-year ended Sep’06 the company has posted 41% increase in net sales to Rs 351.95 crore. The operating profit margin of the company has improved to 28.1% from 16.4% due to fall in raw material cost, stores & packing cost, power & fuel cost, staff cost, and other expenses as a percentage of sales (net of stock adjustment) to 10.35%, 6.56%, 26.82%, 5.19% and 7.43% respectively. (Last year: 11.12%, 9.26%, 33.44%, 6.19% and 9.2%). Transport, Clearing & Forwarding charges as a percentage of sales has increase to 15.56% from 14.15% due to ban on overloading and increase in diesel prices. Surge in revenue coupled with improvement in margins has lead to 142% growth in operating profit to Rs 99.02 crore.

Other Income has declined by 79% to Rs 1.17 crore while provision for depreciation has declined by 13% to Rs 21.86 crore. Interest expenses have increased sharply to Rs 12.01 crore as compared to Rs 0.22 crore in the corresponding period in previous year. PBT was up by 221% to Rs 66.32 crore. Provision for tax has for the period stood at Rs 4.1 crore as compared to Rs 0.22 crore in corresponding period in last year. The company has reported a net profit of Rs 62.22 crore as compared to Rs 20.42 crore in last year, up by 205%.

As on 30^th Sep’06 public shareholding stood at 58.82% as compared to 60.19% in the last year.

As on 27^th Oct’06 closing price of JK Lakshmi Cement on BSE was Rs 153.3.