Company consolidates earnings with green power usage, plant upgrades, and robust capex rollout while merger approvals remain pending
JK Lakshmi Cement Ltd. (JKLC), a flagship company of the JK Organisation, has reported a net profit of ₹361.45 crore for the financial year ending March 31, 2025. While full-year net sales dipped to ₹5,698 crore compared to ₹6,319 crore in FY24, the company improved sequential profitability in the fourth quarter on account of better product mix, operational controls, and fuel cost moderation.
The cement major posted a standalone PAT of ₹138 crore in Q4FY25, compared to ₹142 crore in the same period last year. Its PBIDT for the year stood at ₹761 crore and profit before tax was ₹492 crore, reflecting operational resilience despite volume and revenue fluctuations.
Chairperson and Managing Director Vinita Singhania attributed the sequential improvement to higher volumes and enhanced plant efficiency. She also highlighted the company’s steady performance despite industry-wide input pressures.
Composite Scheme of Arrangement Awaits Regulatory Clearance
JK Lakshmi Cement has submitted its Composite Scheme of Arrangement for regulatory approval. The scheme proposes to merge its subsidiaries Udaipur Cement Works Ltd., Hansdeep Industries, and Hidrive Developers into JKLC. The appointed date for the merger is set as April 1, 2024, although its impact is not yet reflected in the current financials.
The company has already approached regulators and awaits approvals to move forward with structural integration across its group companies.
Green Energy Gains Momentum at Sirohi Plant
The company’s green initiatives saw measurable progress in FY25. At the Sirohi Cement Plant, JK Lakshmi Cement is implementing a project to raise its Thermal Substitution Rate from 4 percent to 16 percent. In the fourth quarter, the share of renewable energy in the power mix reached 50 percent.
These sustainability measures not only align with global ESG benchmarks but also improve long-term cost competitiveness in an increasingly regulated environment.
Capex Update: Multiple Projects Across Five States
JK Lakshmi Cement is currently executing a multi-state expansion plan across grinding and clinker capacities. Highlights include:
- Expansion of grinding capacity at Surat from 1.35 million tonnes to 2.7 million tonnes with a ₹225 crore investment. This is funded through ₹150 crore in term loans and the rest through internal accruals.
- Construction of a dedicated railway siding at the Durg Cement Plant at a cost of ₹325 crore. This will streamline bulk material logistics and reduce carbon intensity per tonne of dispatch.
- Addition of a new clinker line with 2.3 million tonnes capacity at Durg, along with four new cement grinding units totaling 4.6 million tonnes in Chhattisgarh.
- Development of split-location grinding units with a total cement grinding capacity of 3.4 million tonnes. These are located in Prayagraj in Uttar Pradesh, Madhubani in Bihar, and Patratu in Jharkhand. This expansion project is expected to cost ₹2,500 crore, to be financed through ₹1,750 crore in bank loans and internal accruals for the balance.
