J K Lakshmi Cement net up 386pc, sales jump 50%

New Delhi, Jan 18 (UNI) J K Lakshmi Cement, which is undergoing expansion at its Rajasthan plant, today reported a multi-fold jump of 386 per cent in net profit at Rs 55.06 crore in the third quarter ended December 2006 as against Rs 11.33 crore in the same period last year.

The company Vice Chairman and Managing Director Bharat Hari Singhania attributed the growth to the company's ongoing capacity expansion which will reach five million tonnes per annum (mtpa) by September next year, for which the company is investing Rs 132 crore.

The Q3 net sales too increased by almost 50 per cent to stand at Rs 228.64 crore as against Rs 152.86 crore in the third quarter last fiscal, he told newspersons at a select press meet.

The existing capacity of the company stands at 3.3 mtpa and will reach 3.6 mtpa by June this year.

''The company is setting up a new kiln at its existing site (Rajasthan) which would raise its capacity to five mtpa. The project would cost Rs 302 crore while the expanded capacity would be achieved at a capital cost of Rs 2,237 per tonne,'' he said.

J K Lakshmi is also setting up a 36 MW power plant which is likely to get operational by March. ''This plant will further add to cost savings. Higher capacities in FY09 and would lead to full scale utilisation of facilities and result in higher operating margins.'' The company's EPS during the quarter stood at Rs 9.65 as compared to a mere Rs 2.05 in the corresponding period.

UNI