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Showing posts with label JK Lakshmi Cement. Show all posts
Showing posts with label JK Lakshmi Cement. Show all posts
Wednesday, November 02, 2011
Tuesday, February 01, 2011
Sunday, January 30, 2011
Tuesday, November 23, 2010
Wednesday, June 30, 2010
Annual Report - JK Lakshmi Cement - 2009-2010
JK LAKSHMI CEMENT LIMITED
ANNUAL REPORT 2009-2010
DIRECTOR'S REPORT
TO
THE MEMBERS
The Directors have pleasure in presenting the 70th Annual Report together
with the Audited Accounts of the Company for the year ended 31st March
2010.
Friday, April 23, 2010
Wednesday, September 02, 2009
Sunday, May 31, 2009
JK Lakshmi Cement
The stock of JK Lakshmi Cements looks an attractive buy in the mid-cap cement space at the current price of Rs 98. The stock trades at just three times its trailing four quarter earnings when some of its peers are at over six times (Prism Cements’ PE six times, Binani Cement’s PE eleven times and Dalmia Cement’s PE seven times).
There is a promise of upside from the current level given the company’s capacity expansion plans (a 2.7-million-tonne green-field plant) and its established client and dealer network. JK Lakshmi Cement is the flagship company of the JK group.
Sector outlook
Having commissioned its first unit in Sirohi, Rajasthan, in 1983, the company holds a 10 per cent market share in Rajasthan and Gujarat. The company’s product mix includes blended cement, ready-mix-concrete (RMC) and plaster of paris.
Western and Northern India, the two regions served by the company, are expected to see good consumption growth on the back of the work for the Commonwealth games in Delhi and order inflows from government-funded projects in Maharashtra.
Further, the return of the UPA government at the Centre has given rise to hopes that the golden quadrilateral project under the National Highways Development programme, which suffered setbacks in the period between 2004 and 2008, will be expedited. Recent initiatives by the Cabinet Committee of Economic Affairs to allow highway developers to seek higher viability gap funding from the government may fasten the pace of completion of these projects and bolster cement demand. The RMC business may be a key beneficiary.
JK Lakshmi Cements is one of the few mid-sized players to have 11 RMC plants with a combined capacity of five lakh cubic metres; it has participated in the Indira Gandhi Nahar (IGN) and Golden Quadrilateral project.Demand should not be a concern for the company as it has an established client base, with leading infrastructure builders such as L&T, Delhi Airport Authority, Essar Refinery, Reliance, Hindustan Construction Company and Raj West Power (a subsidiary of JSW Energy) among its clients. The brand is distributed by over 1,500 dealers across North and West India.
The company has recorded a strong 18 per cent growth in sales in the March quarter of 2009 supported by an equivalent volume growth and stable prices.
Investments that will pay-off
The past March quarter saw JK Lakshmi Cement’s cement capacity expand 30 per cent through addition of a 0.55 million tonne grinding unit at Sirohi in Rajasthan and another 0.55 million tonne grinding unit at Kalol near Ahmedabad.
The company has begun acquiring land for its 2.7 million tonne (mt) green-field plant at Chattisgarh. The estimated outlay for this project is Rs 1,100 crore and is to be financed by a mix of debt and internal accruals. The debt outstanding in the company’s balance-sheet as on March 31, 2009 was Rs 700 crore and the debt-to-equity stands at a moderate 0.9.
To make cost savings, the company is setting up a 12 MW waste heat recovery plant at an outlay of Rs 125 crore. Till the December quarter end of 2008, 80 per cent of the company’s power requirements were met by its captive thermal power plants (36 MW).
But with power needs going up following the 1.1 mt addition to capacity in the March quarter, the company has tied up with a private power company to meet the additional requirements. This power, the company claims, is sourced at a cost lower than sourcing from the grid.
The company has been switching between coal and high calorie pet coke for fuel over the past year based on relative price parity. In the current fiscal, after negotiating lower pet coke prices with the suppliers, the company hopes to make fuel cost savings
Margins head-up after declining
The company’s operating profits for the recent March quarter was 31 per cent higher than the corresponding previous period. Increased volume, higher selling price and the savings in cost due to the fall in pet coke prices have aided margin expansion.
Operating profit margins for the quarter stood at 31.9 per cent, a 163 basis point expansion over the same quarter of the previous year.
However, for the full year FY-09, the company’s operating margin has still contracted by 453 basis points to 25.8 per cent due to higher fuel prices (up 25 per cent) and employee expenses (up 24 per cent). Operating profit margins stood well above 30 per cent in the preceding two years.
Monday, July 14, 2008
Saturday, January 19, 2008
Wednesday, November 14, 2007
Tuesday, May 22, 2007
Saturday, May 19, 2007
Monday, March 05, 2007
Sunday, November 19, 2006
J K Lakshmi Cement : Despite heavy rains, bottom line almost triples
JK Lakshmi Cement reported a 30% growth to Rs 163.21 crore in revenue in the quarter ended September 2006 despite heavy rains affecting the company’s despatches and production.
Operating profit margin (OPM) improved 760 basis points (bps) to 24.2% due to high cement prices. Realisation was Rs 2900 per tonne as compared with Rs 2200 per tonne in the September 2005 quarter — up 32%. Net profit surged 174% to Rs 23.37 crore.
In the half-year ended September 2006, net sales jumped 41% Rs 351.95 crore, and net profit 205% to Rs 62.22 crore.
JK Lakshmi Cement produced 6.21 lakh tonnes in the September 2006 quarter compared with 6.59 lakh tonnes in the September 2005 quarter — down 6%. The company reported despatches of 6.4 lakh tonnes compared with 6.86 lakh tonnes in the September 2005 quarter — down 7%. Production and despatches were adversely affected due to heavy rains in Rajasthan in August 2006, which impacted inward and outward movement of material. The company estimated despatches of one lakh tonnes were affected.
However, normalcy has since been restored and, hence, the adverse fallout is not expected to go beyond the September 2006 quarter. In the December 2006 quarter, J K Lakshmi Cement expects to produce a minimum 7.5 lakh tonnes
J K Lakshmi Cement will invest Rs 152 crore for a petcoke-based power plant, of which Rs 45 crore will be funded by internal accruals and equity.
The tax rate will remain under MAT for another five to six years as J K Lakshmi Cement has huge accumulated losses and depreciation. Limestone reserves are likely to last for the next 30-35 years.
J K Lakshmi Cement is to set up a 0.5 million-tonne grinding unit in Gujarat near the fly ash source. The unit is likely to commence in August-September 2007. The company’s current capacity is about three million tonnes. By December 2008, it will be increased to four million tonnes.
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