JK Lakshmi Cement Q1 results: PAT doubles to Rs 156 cr on lower expenses

India's JK Lakshmi Cement on Wednesday reported a two-fold rise in first-quarter profit, aided by lower expenses.

The company's net profit after tax stood at Rs 156 cr ($18.7 million) for the quarter ended June 30, compared to Rs 74.88 cr a year ago. Total expenses fell 13 per cent to Rs 1,326 cr year-on year.

India's general elections, and an extreme summer season spanning the April-June period, restricted construction activities and hit sales volumes for cement makers. Additionally, with competition in the sector stiffening, companies resorted to discounts or rolling back price hikes from earlier in the quarter, weakening their margins.

JK Lakshmi's quarterly sales volumes fell 8 per cent to 2.3 million tonnes year-on-year, but costs fell more, with a 28 per cent drop in fuel-related expenses.

India's largest cement maker UltraTech Cement reported first-quarter profit and revenue below estimates, while rival ACC Cement also reported a profit-miss.