India · Delayed Price · Currency is INR JK Lakshmi Cement Earnings Call Transcripts
Fiscal Year 2027
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Cement demand grew 8% year-over-year, with realizations up 9% sequentially due to geo-mix and non-trade price gains. Rising fuel and packing costs pressured margins, but CapEx and capacity expansion plans remain on track, targeting 30 million tons by FY 2030.
Fiscal Year 2026
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Cement demand grew 7% in FY 2026, but record capacity additions pressured utilization and pricing. Cost inflation, especially in fuel and packaging, is expected to persist, with limited price hikes so far. Major expansions and efficiency initiatives continue, with net debt set to rise due to high CapEx.
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Q3 saw a sharp drop in realizations due to higher non-trade sales and price declines, especially in Gujarat after the Surat plant commissioning. Management expects double-digit volume growth and price recovery in Q4, with CapEx and expansion projects on track.
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Capacity expansion to 30 million tons by FY 2030 is underway, with Durg brownfield and multiple greenfield projects planned. Premium product mix, supply chain efficiency, and technology adoption are driving performance, while CapEx and cost-saving initiatives remain on track.
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Net profit doubled year-over-year, driven by strong volume growth and operational synergies from the Udaipur Cement merger. Major expansion projects are underway in Durg and the Northeast, with significant CapEx planned and a focus on efficiency, cost savings, and premium product growth.
Fiscal Year 2025
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Demand and pricing improved in H2 FY25, with premium products and efficiency gains supporting growth. FY26 guidance targets 10% volume growth, stable prices, and INR 100-120/ton cost reduction. CapEx plans and project timelines remain on track despite delays in the Northeast.
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Demand and pricing improved from December, with FY 2025 growth at 4–5% and FY 2026 at 6–7%. Operational focus, brand rejuvenation, and capacity expansions are set to drive above-industry growth and improved profitability, with CapEx plans of INR 800–1,500 crores over the next three years.
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Q2 FY25 saw a 9% YoY volume decline due to weak demand and price pressure, but market share was maintained in core regions. Cost reductions and a focus on premium products supported margins, while CapEx for FY25 is guided at INR 900 crore consolidated. Expansion and merger processes are on track.
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Volumes remained flat and realizations dropped to three-year lows due to weak demand and pricing pressure, but operational efficiencies and premiumization partially offset margin impact. CapEx and expansion plans remain on track, with the UCWL merger set to consolidate capacities and strengthen the balance sheet.