JK Lakshmi Cement Q1 Results: Profit Falls Over 15%, Misses Estimates
The board also approved a scheme of arrangement for the merger of three of its subsidiaries into itself.
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JK Lakshmi Cement Ltd. posted a 15.3% decline in its consolidated net profit in the April–June period of fiscal 2025, missing analysts' estimates.
The cement manufacturer's profit decreased to Rs 68 crore in the first quarter, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had set a consensus estimate of Rs 120.9 crore.
The company's board also approved a composite scheme of arrangement for the merger of its subsidiaries Udaipur Cement Works Ltd., Hansdeep Industries and Trading Co. and Hidrive Developers and Industries Ltd. into itself.
JK Lakshmi Q1 FY25 Highlights (Consolidated, YoY)
Revenue down 9.6% to Rs 1,564 crore (Bloomberg estimate: Rs 1,658.1 crore).
Ebitda down 13.3% to Rs 222 crore (Estimate: Rs 274.6 crore).
Ebitda margin widens to 14.2% versus 11.3% (Estimate: 16.6%).
Net profit down 15.3% to Rs 68 crore (Estimate: Rs 120.9 crore).
Details For The Scheme Of Arrangement
The scheme of arrangement approved by the company's board approves merger of its subsidiaries Udaipur Cement Works, Hansdeep Industries and Hidrive Developers into itself. The appointment date for the merger is April 1.
The proposed scheme will have the following considerations:
Merger of Udaipur Cement Works: Shareholders of UCWL will get four shares of JK Lakshmi Cement for every 100 shares they hold in UCWL.
Merger of Hansdeep Industries and Hidrive Developers: No shares will be issued for these mergers as JKLC already owns all shares of both the companies.
The Scheme of Arrangement is expected to be effective from the second half of the calendar year.
The approved merger will not only allow JK Lakshmi Cement an opportunity to better consolidate its assets and utilise them more efficiently, it will also allow the company to enhance its overall business growth via the benefits of synergies, it said in its exchange filling.
Sales Volume
JK Lakshmi Cement's standalone sales volume during Q1 FY25 stood at 23.26 lakh tonne, marking a 8% decline on an annual basis.
The company's consolidated sales volume stood at 30.37 lakh tonne, around the same level it was a year ago.
