J K Lakshmi

JK Lakshmi Cement is down in the red on the back of its disappointing Q2FY16 performance. The company posted a loss YoY and the market, as expected, is pressing heavy sales on the counter. Volumes today are up almost 6 times. Intra day, the stock price went down over 3.5% to Rs.354.10.

On account of subdued sales, lower price realization, higher expense and interest outgo, the company ended the quarter with a net loss of Rs.15 crore v/s net profit of Rs.31 crore in previous Q2. The only saving grace – QoQ loss has come down from Rs.23 crore.

Net revenue was up 13% but costs rose 21% and ate away 96% of topline v/s 89% in Q2FY15. EBITDA thus slipped 24% to Rs.67 crore. Interest outgo was up 118% at Rs.48 crore and like the colloquial last straw, pushed the bottomline into the red. Its H1FY16 loss stands at Rs.38 crore v/s profit of Rs.71 crore (YoY).

The company in its statement said that profitability suffered mainly due to additional burden of interest and depreciation on account of commissioning of 1st phase of company's greenfield cement plant at Durg in March 2015. It added that cost also shot up due to the newly imposed contribution to District Mineral Fund amounting to Rs 8.57 crore for the period of six months in this quarter. It attributed the lower sales growth to volume as well as prices which were impacted by subdued market conditions.