Tuesday, 20 January 2009

JK Lakshmi Cement

Performance Review (Quarter & 9 months ended Dec 08)

Comments
The company achieved marginal revenue growth of around 5 per cent for the quarter as well as nine months period. Although the sales volumes were higher by around 10%, lower realisations led to lower sales growth.

The operating margin (EBIDTA) has been largely impacted by higher power & fuel costs (27 per per cent of net sales during 9 months ended December 31, 2008 vis-a-vis 22 per cent in the corresponding period in the last year).

Lower operating margin led to lower net profits.

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