JK Lakshmi Cement Limited hosted a conference call to discuss its financial performance for the second quarter and first half of FY27. Management provided insights into cost pressures, pricing strategies, and upcoming capacity expansions. Key updates included the progress on the Durg expansion and plans for new plants in Northeast and West Bengal, with an estimated total capex of INR 1,500 crores for the current year.
JK Lakshmi Cement Outlines Q2 FY27 Performance and Growth Strategy
JK Lakshmi Cement Limited held its Q2 and H1 FY27 earnings conference call, providing a comprehensive update to investors. The call, hosted by PhillipCapital (India) Private Limited, featured management’s insights into the company’s performance, operational challenges, and strategic growth initiatives. The company emphasized its focus on managing cost pressures, particularly from fuel, and outlined its plans for significant capacity expansion to meet future demand.
Financial Performance and Cost Management
Management acknowledged the seasonal weakness in the second quarter but highlighted the rising cost of fuel, including coal and petcoke, impacting the industry. Despite these challenges, JK Lakshmi Cement is implementing strategies to mitigate cost increases, including changes to its fuel mix. The company is also observing an upward trend in demand and prices, especially post-Diwali, and expects to recover some of the cost increases through market pricing.
Capacity Expansion and Capex Plans
A significant portion of the discussion revolved around the company’s expansion projects. The Durg expansion, which includes clinker and cement units, is progressing well, with over 50% of civil work completed. The company is targeting completion by March 2028. Additionally, plans are in motion for new plants in Madhubani (Bihar), Prayagraj (Uttar Pradesh), and Northeast India, with a total of 4.6 million tons capacity expected from these new projects. Total planned capex for the current year is approximately INR 1,500 crores, with further significant investments planned for FY28 and FY29.
Market Outlook and Strategy
JK Lakshmi Cement operates in key geographies including North, West, and East India. Management expressed optimism about the demand outlook, particularly for the second half of the fiscal year. The company’s strategy remains focused on consolidating its market share in existing regions while pursuing growth through capacity expansion. The focus on premiumization and product differentiation is also a key element of their market strategy.
Source: BSE
