JK Lakshmi Cement shed 3.44% to Rs 287.55 after consolidated net profit fell 5.8% to Rs 50.63 crore on 19.8% decline in net sales to Rs 911.54 crore in Q1 June 2020 over Q1 June 2019.
Consolidated profit before tax (PBT) slipped 3.6% to Rs 71.99 crore in Q1 June 2020 as against Rs 74.68 crore in Q1 June 2019. Current tax expense for the quarter dropped 12.2% at Rs 12.17 crore as against Rs 13.86 crore in Q1 June 2019. The Q1 result was declared after trading hours yesterday, 5 August 2020.
Sales volume was severely impacted by lockdown restrictions during most part of the quarter Q1 June 2020 resulting into sales volume plunging by 18% Y-o-Y (year-on-year) in April-June 2020 over April-June 2019. EBITDA skid 14% Y-o-Y to Rs 151.51 crore in April - June 2020 as against Rs 175.93 crore in April - June 2019. Continuing cost savings, improving product mix & reduction in logistic costs enabled the company to marginally improve its operating margins to 17%.
The company said it also managed its working capital efficiently during the quarter and brought down its inventory and debtors considerably. To reduce the power cost, the company is enhancing further its WHR power capacity by 10MW which is likely to be commissioned in first half of FY 2022.
JK Lakshmi Cement manufactures cement, which it sells under the brand name JK Lakshmi.
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