JK LAKSHMI CEMENT LTD

Management reported that the demand for cement in Quarter 1 FY27 was reasonably strong, with industry growth of about 8%. They noted that 11 million tons of new supply had been added, bringing the total installed capacity in India to approximately 725 million tons, with average capacity utilization around 73-74%. Management highlighted that geopolitical issues, particularly in the Middle East, had disrupted supply chains and increased costs, especially for imported fuel. They indicated that while prices had increased, the pass-through to customers had not fully matched the rise in costs. Management also discussed their focus on mitigating these challenges through various internal strategies, including the use of indigenous coal and renewable energy. They mentioned that despite some resolutions facing negative votes from proxy advisors during the recent AGM, most were passed with a majority. The management set a goal of achieving 30 million tons of capacity by FY30.

Management highlighted both growth opportunities and challenges faced by the company.