JK Lakshmi Cement, part of JK Organization, has reported a dip of 30.66 per cent in its net consolidated profit during the quarter ended June 30, 2023. Its profit after tax stood at Rs 79.79 crore in Q1 FY24 as against Rs 115.07 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s net consolidated total income stood at Rs 1,741.38 crore in Q1 FY24, a growth of 4.84 per cent from Rs 1,661.05 crore it recorded in the similar quarter last year.
Vinita Singhania, vice chairman & managing director of the company said, “the operations of the company during the quarter were impacted by unprecedented rain & cyclone Biparjoy in the State of Gujarat & Rajasthan.”
The board of directors approved fund raising through term loan(s)/issue of debt securities/bonds or any combination
thereof, in one or more tranches, upto an amount of Rs 2,500 crore to part finance the company’s ongoing projects and for funding its various growth opportunities including inorganic growth.
The standalone net sales and the standalone sales volume increased by 5% in Q1 FY24. The company achieved a clinker capacity utilization of 97% and cement capacity utilization of 85% in Q1 FY24.
The company is implementing a project for enhancing its TSR from 4% to 16% in a phased manner at its Sirohi cement plant. It is also enhancing its WHR Capacity by 3.5 MW at Sirohi which will come into stream in fourth quarter of FY24.
In order to further increase its share of Renewable Power, the company has tied-up with a private player for sourcing 40 MW of Solar Power Plant for its Durg cement plant. After the implementation of this Solar Power Project, the share of Renewable Energy would go up to 80% for Durg Plant and to around 50% for the company.
Work on the expansion project at its subsidiary, Udaipur Cement Works (UCWL) of 2.50 million tonnes cement plant is on full swing as per schedule. The project is expected to be commissioned in the second quarter of FY25. The trial runs for Clinkerisation Line of 1.50 million tonnes per annum has now commenced.
UCWL has successfully completed the Rights Issue of Rs.448 Crores in July 2023. The proceeds of the Rights Issue are to be deployed in the on-going expansion project of the company.
The board also approved acquisition of 100% equity shareholding of Hidrive Developers and Industries for Rs 16.33 crore, the company said in the regulatory filing.