JK Lakshmi Cement, a well-established player in north & west India has reported excellent performance. The company operates a 3.5M tones cement plant in Rajasthan. It owns the popular JK Lakshmi cement brand.
Production and Sales for the quarter increased by 40% and 36% respectively over the corresponding quarter of the previous year. During the quarter, the company experienced a 314% increase in profit to Rs 73.5 crore, from Rs 23.37 crore in the Q2 FY2007. On the other hand net sales 63.92% from Rs 16.32 crore in Q2 FY2007 to Rs 26.75 crore in Q2FY2008. Company reported diluted EPS of Rs 12.63 for Q2FY2008.
The stock gained Rs 14.05, or 7.63% to trade at Rs 198 on BSE with the volumes of 228,184. Analysts reckoned that the jump in the profits is due to captive power. The company recently activated the first phase of captive power plant. Also last year the company's performance was low in the same quarter as the plant faced sudden shutdown due to heavy rains and subsequent floods.
The company is embarking on the expansion plan and the second phase of the captive power should go on stream by end of CY2007. |
