How has been the historical performance of JK Lakshmi Cem.?

Dec 01 2025 11:09 PM IST
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JK Lakshmi Cement's historical performance shows a decline in net sales and profits from March 2024 to March 2025, with net sales dropping from 6,788.47 Cr to 6,192.62 Cr and profit after tax decreasing from 488.15 Cr to 276.57 Cr, despite an increase in total assets. The company also experienced a rise in total debt and a decrease in cash flow from operating activities.




Revenue and Profitability Trends


JK Lakshmi Cem.’s net sales have shown a consistent upward trend over the past six years, increasing from ₹4,316 crores in March 2019 to a peak of ₹6,788 crores in March 2024 before a slight dip to ₹6,193 crores in March 2025. This growth reflects the company’s expanding market presence and operational scale. Total operating income mirrored this pattern, with no other operating income reported during this period.


Operating profit (PBDIT) excluding other income rose significantly from ₹454 crores in 2019 to a high of ₹1,052 crores in 2024, before easing to ₹865 crores in 2025. The operating profit margin, however, contracted from 19.85% in 2021 to 13.96% in 2025, indicating rising cost pressures, particularly in power and manufacturing expenses. Gross profit margin followed a similar pattern, peaking at 16.53% in 2021 and declining to 11.21% in 2025.


Profit after tax (PAT) exhibited notable growth, climbing from ₹41 crores in 2019 to ₹488 crores in 2024, before falling to ₹277 crores in 2025. Correspondingly, the PAT margin decreased from 8.91% in 2021 to 4.46% in 2025. Earnings per share (EPS) reflected these fluctuations, reaching a high of 40.09 in 2024 and settling at 23.52 in 2025.



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Cost Structure and Expenditure


The company’s cost of raw materials and power consumption have increased over the years, with raw material costs rising from ₹644 crores in 2019 to ₹944 crores in 2025, and power costs fluctuating but remaining elevated at ₹1,404 crores in 2025. Manufacturing expenses also increased steadily, reaching ₹1,401 crores in 2025. Employee costs have grown moderately, reflecting workforce expansion and inflationary effects.


Total expenditure excluding depreciation rose from ₹3,863 crores in 2019 to ₹5,328 crores in 2025, underscoring the impact of rising input costs on the company’s profitability. Interest expenses have generally declined from ₹253 crores in 2019 to ₹181 crores in 2025, indicating some improvement in debt servicing efficiency.


Balance Sheet and Financial Position


JK Lakshmi Cem.’s total assets have expanded significantly, from ₹5,124 crores in 2020 to ₹8,445 crores in 2025, driven by investments in gross block assets which increased from ₹4,534 crores in 2020 to ₹7,556 crores in 2025. Net block values also rose, reflecting ongoing capital expenditure and asset additions.


Shareholders’ funds have grown robustly from ₹1,687 crores in 2020 to ₹3,554 crores in 2025, supported by rising reserves which nearly doubled from ₹1,628 crores to ₹3,495 crores over the same period. The book value per share improved from ₹143 in 2020 to ₹302 in 2025, signalling enhanced net worth per equity share.


Long-term borrowings increased from ₹1,364 crores in 2020 to ₹2,051 crores in 2025, reflecting the company’s capital investment strategy. Total debt rose accordingly, reaching ₹2,527 crores in 2025. Current liabilities and trade payables have also increased, consistent with the company’s larger scale of operations.


Cash Flow Analysis


Operating cash flow has generally been positive, with cash flow from operating activities rising from ₹649 crores in 2020 to ₹782 crores in 2025, despite some volatility. Investing activities have consistently shown cash outflows, peaking at ₹1,150 crores in 2025, indicative of ongoing capital expenditure commitments. Financing activities have fluctuated, with a positive inflow of ₹317 crores in 2025 after negative flows in prior years.


Net cash inflow/outflow has been modestly negative in recent years, with a ₹50 crore outflow in 2025. The company’s cash and bank balances have varied, closing at ₹197 crores in 2025 compared to ₹268 crores in 2024.



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Summary and Outlook


JK Lakshmi Cement’s historical performance reveals a company that has steadily expanded its revenue base and asset footprint while managing to grow shareholder equity substantially. Profitability margins have faced pressure in recent years, largely due to rising input costs and operational expenses, which have impacted net profit margins and earnings per share.


The company’s balance sheet remains robust with increasing net worth and manageable debt levels, supported by consistent capital investments. Cash flow from operations remains healthy, although significant investing outflows reflect ongoing expansion efforts.


Investors should weigh the company’s growth in scale and net worth against the margin pressures and capital expenditure demands. The historical data suggests a resilient business with potential for long-term value creation, provided cost efficiencies and market conditions improve.





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