India: JK Lakshmi hit by slower demand, higher costs

JK Lakshmi has reported subdued performance for the third quarter of the current fiscal year due to high freight costs and flat growth in dispatches.

Profits declined by 16 per cent to INR41 crore YoY in the quarter ending December 2012 and lower construction activity led to a 2.7 per cent increase in dispatches.

Rising diesel and freight costs also negatively affected results and, due to lower demand, the company was unable to pass on costs to consumers.

JK Lakshmi, which operates in the northern region of India, is currently doubling its cement capacity from the current 5.3Mta by 2015.