Construction Industry News
India's JK Lakshmi Cement reported a significant 46.3% increase in its fourth-quarter profit, thanks to stringent cost control measures in a challenging market landscape. Despite a decline in sales due to lower cement prices, the company managed to strengthen its operating results.
Net profit after tax (PAT) rose to Rs 1.42 billion from Rs 973.2 million in the previous year. This impressive growth was made possible by a remarkable 10.4% reduction in total costs, driven by lower fuel, transportation and personnel costs.
However, revenue from operations saw a moderate decline of 4.7% to Rs 16.48 billion, mainly driven by a 4.3% decline in volumes. Cement makers in India resorted to offering discounts in the January-March period to combat stiff competition and achieve year-end volume targets. This strategy resulted in a nationwide decline in cement prices to the lowest level in two years on an annual basis.
JK Lakshmi Cement's success in controlling costs reflects a similar trend observed among rival companies like India Cements, which managed to limit its losses. However, Adani-owned Ambuja Cements and south India-focused rival Ramco Cements fell short of their respective fourth-quarter profit estimates.
