JK Lakshmi Cement is showing some extraordinary spurt in volumes – it is up almost 9.5 times currently. The stock opened 4.5% higher at Rs.302.70 and rose to an intraday high at Rs.316.95, up almost 9.5%. It has today outperformed the sector by 5%.
The reason for this spirited jump is its robust Q2FY20 earnings - on a 10% (YoY) rise in sales at Rs.935 crore, it posted a net profit of Rs.46 crore v/s Rs.8 crore.
Its efforts to reduce the logistic cost, optimising the product mix and improved efficiency parameters enabled the company to boost its profitability. The softening of fuel prices has also contributed in improved working. Consolidated EBITDA jumped by 45% to Rs. 155 crore.
During Six months Apr-Sept. 19, Net Sales rose by 11% to Rs. 1977 crore and net profit was at Rs.85 crore v/s Rs.22 crore.
The company's Grinding Unit of 0. 80 million tonnes at Cuttack has since been commissioned. With this, company's total cement capacity stands at 11. 7 million tonnes. On a consolidated basis, the capacity of JK Lakshmi, along with its subsidiary Udaipur Cement Works Limited, stands at 13.50 million tonnes.