JK Lakshmi Cement To Kickstart Production At Durg Plant by Q3FY15

JK Lakshmi, one of the leading cement manufacturing companies of the Indian cement industry, is expected to add one more feather in its cap by Q3FY15. The company said that its Greenfield project at Durg (Chhattisgarh) and is expected to start production in October-December quarter FY'15. The installed capacity of the Durg manufacturing unit is 2.7 MT and once the plant start manufacturing its total installed capacity will reach to 9.3 mtpa. 

The company has aggressively increased its installed capacity in last couple of years in expectation of rises in cement demand. In last fiscal (FY'14) year also the company completed augmentation of Kiln-I capacity, whereby its clinker capacity has increased by 0.33  MT to 4.62 MT per annum. Company has also commissioned its second grinding unit of 0.66 MT per annum at Jhajjar (Haryana).

Besides this the company has also increased the capacity of grinding unit at the mother plant at Jaykaypuram, Sirohi, raising the company’s combined cement capacity to about 6.65 MT. Further, it has also commissioned 6 MW solar Power Plant in Rajasthan.

The company performed well during the last quarter (Q4FY14). Topline of the company grew by 21% to Rs 648 crore in Q4FY14 against Rs 536 crore in the same period of last year. EBITDA recorded double digit growth of 18% on Y-o-Y basis and stood at Rs 112 crore during the said period against Rs 92 crore in Q4FY13. Further, bottomline of the company showed exceptional growth and went up by 58.7% to Rs 53 crore in Q4FY14 as compared with Rs 33 crore in the same period last year.

In today's trading session the company has showed considerable growth in its stock price and went up by 4.81% over its previous closing price. At CMP of Rs 208 per share the company is trading at 8.5 time of its EV multiples.