Net Profit Jumps 109 per cent YoY to Rs 156.31 Crores in Apr-June 2024

NewsVoir

New Delhi [India], August 1: JK Lakshmi Cement Ltd. (JKLC), a Flagship Company of JK Organization today announced its Financial Results for the First Quarter of Financial Year 2025.

Composite Scheme of Arrangement

Further as a part of Company's ongoing efforts to enhance Shareholders' Value, the Company's Board today approved the Composite Scheme of Arrangement which provides for the Merger of its Subsidiaries viz Udaipur Cement Works Ltd (UCWL), Hansdeep Industries & Trading Company Limited and Hidrive Developers & Industries Limited into itself subject to various Regulatory Approvals & Compliances. The Appointment Date for the Merger is 1st April 2024.

Commenting on the Composite Scheme of Arrangement, Smt. Vinita Singhania, Chairperson & Managing Director (CMD) of the Company said, "the Consolidation of fragmented Cement capacities into a Single Business Focused Listed Entity shall result in Enhancement of Value for all the Stakeholders."

Sustainability

The Company is implementing a Project for enhancing its TSR from 4% to 16% in a phased manner at its Sirohi Cement Plant as a part of its Green Initiatives.

During the Quarter, the Company has successfully commissioned WHR 3.5 MW at Sirohi.

Capex

The Company's Subsidiary, Udaipur Cement Works Ltd. (UCWL) had successfully commissioned its 2nd Clinker Line of 1.50 Million Tonnes Per Annum in October 2023, whereby its Clinker Capacity has doubled to 3 Million Tonnes Per Annum. The Cement Grinding Capacity of 2.5 Million Tonnes Per Annum was commissioned in March 2024.

The Company is expanding its Cement Grinding capacity at its Surat Grinding Unit from 1.35 Million Tonnes to 2.7 Million Tonnes. The Project is likely to cost Rs.225 Crores to be funded through Term Loans from Bank of Rs. 150 Crore & the balance from Internal Accruals.

The Company is also putting up a Railway Siding at its Durg Cement Plant at a Cost of Rs.325 Crores to be funded through a Debt of Rs. 225 Crores & the balance through Internal Accruals.

The Company is expanding the Clinker Capacity at its integrated Cement Plant at Durg in Chhattisgarh by putting up an Additional Clinker Line of 2.3 Million Tonnes Per Annum & Four Cement Grinding Units aggregating to 4.6 Million Tonnes Per Annum at Durg in Chhattisgarh and also Three Split Location Cement Grinding Units with aggregate Cement Grinding Capacity of 3.4 Million Tonnes Per Annum at Prayagraj in Uttar Pradesh, Madhubani in Bihar & Patratu in Jharkhand. The Project is likely to cost Rs.2500 Crores & is proposed to be funded through Term Loans from Banks of Rs.1750 Crores & the balance through Internal Accruals.

Outlook

Considering the Government's focus on Infrastructure Development & Higher Budgetary allocation towards Infrastructure Development and various Other Initiatives for Housing & Road Development, the Outlook for Cement Sector is quite positive in the coming year.

JK Lakshmi Cement Limited is a part of the prestigious JK Organisation which is over hundred and thirty-five years old and boasts operations in India and abroad with a leadership presence in the fields of tyre, cement, paper, power transmissions, sealing solutions, dairy products and textiles.

JK Lakshmi Cement, started in 1982, is a renowned and well-established name in the Indian Cement industry for four decades and has an annual turnover of over Rs 6000 crores. The Company has a formidable presence in Northern, Western and Eastern India's cement markets, with a vision of reaching Cement Capacity of 30 Million Tonnes by 2030. The present combined capacity of the Company is about 16.5 Million Tonnes per annum.

The Company offers a wide range of products under Smart business solutions (SBS), such as, JK Lakshmi Powermix- Ready Mix Concrete (RMC), JK Lakshmi Plast- Gypsum Plaster and JK SmartBlox- Autoclaved Aerated Concrete Blocks (AAC Blocks).

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