This article first appeared on GuruFocus .
Release Date: February 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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JK Lakshmi Cement Ltd ( BOM:500380 ) reported a strong demand in Gujarat, driven by the commissioning of the Surat grinding station, which increased their volume in the region.
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The company has seen an improvement in nontrade prices since December, with expectations for trade prices to follow due to increased demand and rising fuel costs.
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JK Lakshmi Cement Ltd ( BOM:500380 ) is optimizing productivity, which has led to a reduction in employee costs, and plans to continue these efforts.
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The company is on track with its CapEx plans, with significant investments in the Durg Line 2 project expected to be completed by March 2028.
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There is a focus on increasing the production of blended cement, which aligns with their carbon net-zero roadmap and is expected to improve the clinker-to-cement ratio.
Negative Points
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The company experienced a significant decline in trade sales volume, attributed to market conditions and increased nontrade sales in Gujarat.
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Realization per tonne dropped by 9% quarter-on-quarter, primarily due to a sharp decline in nontrade prices post-GST reduction.
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There is a high level of volatility in realizations and EBITDA per tonne compared to peers, largely due to the company's concentrated geographic footprint.
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The company faces challenges in maintaining stable trade prices amidst fluctuating market conditions and increased competition.
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Fuel costs are expected to rise due to increased pet coke prices, which could impact future profitability.
Q & A Highlights
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Q: Can you explain the decline in trade sales volume on a year-on-year basis? A: Arun Shukla, President and Executive Director, explained that the decline in trade sales was due to increased nontrade sales in Gujarat, driven by the commissioning of the Surat grinding station in September 2025. This shift was temporary, and trade volumes have since recovered in December and January.
Q: What is the current pricing scenario in your markets, and how has it affected your financials? A: Arun Shukla noted that nontrade prices have increased since December, while trade prices have remained stable. The company expects trade prices to rise due to improved demand and increasing fuel costs. Employee costs have decreased due to productivity improvements.
Q: What is the status of the Durg Line 2 expansion, and how much CapEx has been incurred? A: Sudhir Bidkar, Executive Director and CFO, stated that INR260 crores have been spent on the Durg Line 2 project, with a total of INR400 crores planned for the current financial year. The project is expected to be completed by March 2028.
Q: How has the realization volatility affected your financial performance compared to peers? A: Arun Shukla explained that the company's limited geographic footprint makes it more susceptible to market fluctuations. The decline in nontrade prices, particularly in Gujarat, significantly impacted realizations. However, the company expects prices to improve due to rising demand and costs.
Q: What are the expectations for fuel costs and their impact on future pricing? A: Arun Shukla mentioned that fuel costs, particularly pet coke, are expected to rise, which will likely lead to increased prices in both trade and nontrade segments. The company is monitoring the situation closely to adjust pricing strategies accordingly.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
