JK Lakshmi Cement — Elevated Cost Impacts H1; Expects Strong Margin Recovery In H2: Axis Securities
JK Lakshmi Cement is focusing on many levers of cost optimisation with increasing use of green energy and AFRs.
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Axis Securities Report
JK Lakshmi Cement Ltd. aims to reach cement manufacturing capacity of 30 million tonnes per annum by 2030 on consolidated basis.
The company has hired a grinding unit in Amethi, Uttar Pradesh with a capacity of 1.5 mtpa . The despatch from this unit started in July, 2022 and initial response has been encouraging. The company aims to sale 1 mtpa of Cement by March,2023.
JK Lakshmi Cement is focusing on many levers of cost optimisation with increasing use of green energy and alternative fuel and raw materials. The company aims to substantially increase use of green energy from current 30% to 50% and 80% by FY2025 and FY2030. It is also increasing its solar power capacity. In order to lower freight cost, it is focusing more on direct dispatches.
The management expect a volume growth compound annual growth rate of 7-8 percent in next three-four years driven by higher demand and higher cement consumption.
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