Key Points from the discussion:

• The company standalone net profit jumped 126% to Rs96.45 crore for the fourth quarter ended March 2018, helped by lower tax expenses. Its total income from operation during the quarter under review stood at Rs1,316 crore, higher by 9% from Rs1,205 crore in the year-ago period. For the fiscal ended March 2018 (FY18), the company posted a standalone net profit of Rs 341.87 crore, higher by 62% from a net profit of Rs 210.78 crore in FY17. Total income from operation for FY18 was at Rs 4,758 crore, registered a gain of 9% from Rs 4,479.15 crore in FY17.

• The company plans to add 4.2 MT capacity in the northern region for a capex of Rs 2,000 crore (Rs700 crore in FY19 and Rs1300 crore in FY20). JK Cement expects to fund the same through debt of Rs 1,200 crore and rest through internal accruals. The company will add 1 MT at Nimbahera, 1 MT at Mangrol, 1.5 at UP and 0.7 at Gujarat.

• The company lead distance in Grey Cement was 450km and there was no increase in freight cost/tn on a sequential basis.

• The company saved from the usage of alternative fuel was Rs6-7 crore in FY18, which is expected to increase to Rs15-20 crore in FY19.

• The company expects volume growth at 6-7% in FY19, which would be driven by 9-10% growth in North India.

• UAE operations: The Company UAE plant operated at 50% capacity utilization. The company plans to improve profit from this plant through higher volume in African markets where prices are higher, imports in the South region in India and limestone mining through own mines in UAE, which would help reduce costs.