JK Lakshmi Cement Q3 Profit Falls 23% Despite Revenue Growth

JK Lakshmi Cement Ltd reported a decline in profitability for the third quarter, reflecting margin pressures even as revenues continued to grow. The company posted a net profit of Rs 57 crore for the quarter ended December, marking a 23 per cent drop compared with Rs 74 crore reported in the same period last year. The performance highlights the impact of cost pressures faced by cement manufacturers amid a competitive market environment.

Revenue from operations during the quarter increased 6.3 per cent year-on-year to Rs 1,588 crore, compared with Rs 1,496 crore in the corresponding quarter of the previous financial year. The growth was supported by stable demand and improved dispatches across key markets. However, higher input and logistics costs weighed on overall profitability.

Earnings before interest, tax, depreciation and amortisation stood at Rs 205.5 crore, registering a modest growth of 2.1 per cent over the year-ago period. The EBITDA margin declined to 12.9 per cent from 13.4 per cent a year earlier, indicating continued margin pressure despite operational efficiencies.

On the expansion front, JK Lakshmi Cement is investing heavily to strengthen its manufacturing and logistics capabilities. The company is constructing a railway siding at its Durg cement plant at an estimated cost of Rs 325 crore. The project is being funded through Rs 225 crore of debt, with the remaining amount met through internal accruals. The first phase of the railway siding project has already been completed.

The company is also expanding clinker capacity at its integrated Durg plant in Chhattisgarh by adding a new clinker line of 2.3 million tonnes per annum along with four cement grinding units aggregating 4.6 million tonnes per annum. In addition, three split-location grinding units with a combined capacity of 3.4 million tonnes per annum are planned at Prayagraj in Uttar Pradesh, Madhubani in Bihar and Patratu in Jharkhand.

The total cost of the expansion programme is estimated at around Rs 3,000 crore and will be implemented in phases. The project is proposed to be funded through bank term loans of Rs 2,100 crore, with the balance coming from internal accruals, and is expected to be fully completed by March 2028.