JK Lakshmi Cement today said its net profit increased by 59 per cent to Rs 52.91 crore in the January-March quarter on higher sales, operational efficiency and better price of the building material.
The cement maker, which has 6.65 million tonnes per annum (mtpa) capacity now, had clocked a net profit of Rs 33.34 crore in the corresponding quarter of the previous fiscal.
"The net profit has gone up by 59 per cent during the January-March quarter on three things - higher volume, better efficiency of the plants and a better price of the products," JK Lakshmi Cement's Whole-time Director Shailendra Chouksey told PTI.
Sales of the company rose by 18 per cent year-on-year and prices were also up by around 4 per cent compared to the same period last fiscal. The variable cost of the company dipped by about 2 per cent.
Buoyed by higher sales and a two per cent increase in the realisation, company's turnover in the January-March quarter rose by 21 per cent to Rs 721.55 crore against Rs 598.16 crore in the corresponding quarter of the previous fiscal.
For the financial year 2013-14, JK Lakshmi's turnover and operating profit stood at Rs 2,293.59 crore and Rs 346.23 crore, respectively.
The board of directors has recommended 40 per cent dividend for financial year 2013-14.
Chouksey said despite the poor run of the cement industry in last couple of years, the current year would be "very" good because demand would surely go up with infrastructure sector is likely to receive a huge push from a stable government at the Centre.
"Cement demand will be buoyant in the current fiscal. I would not be surprised if it goes up by 8-9 per cent against just a 3 per cent growth in 2013-14 fiscal," Chouksey said.
During the January-March quarter, India's cement demand grew by just 2 per cent.
