JK Lakshmi Cement hits a high

JK Laksmi Cement is in the limelight today following its exuberant performance for Q2FY15. The stock, which closed yesterday at Rs359.80, opened today at Rs.373.90 and went on to hit a new high at Rs.383.05. The stock remains almost 5% higher, with robust volumes.

The company, for Q2FY15, thanks to better realisations and increased volume, showed a 210% (YoY) jump in net profit at Rs.31 crore and on a 27% jump in net sales at Rs.573 crore. Operating profit was up from Rs.65 crore to Rs.90 crore. Production during the quarter rose 11% at 13.53 lakh tones and volumes rose 13%. The company has also provided Rs.5 crore, an exceptional expense, which is towards demand notice from the sales tax department. The company feels that it has a strong case and matter would be decided in its favour, yet this provision is cautionary.