JK Lakshmi Cement Ltd

JK Lakshmi Cement has shown fluctuating financial performance. While long-term sales growth has been strong, recent trends indicate a decline. Compounded Sales Growth shows a 10-year growth of 10%, but the TTM growth is -9%. Similarly, the compounded profit growth over 10 years is 8%, but it has declined to -13% over the last 3 years and -35% TTM. Quarterly results show fluctuating sales and profit figures, with YOY Sales Growth ranging from -21.61% to 16.39%. OPM% also varies, indicating inconsistency in operational efficiency.

Capital efficiency and returns for JK Lakshmi Cement present a mixed picture. The ROCE has fluctuated over the years. ROE also shows variability. The cash conversion cycle has varied significantly, from negative values to as high as 128 days, indicating inconsistent working capital management.

JK Lakshmi Cement's financial health shows some areas of concern. The debt levels have been increasing, as reflected in the rising borrowings from ₹1,880 Cr in Mar 2023 to ₹2,614 Cr in Mar 2025. The dividend payout has been consistent, ranging from 10% to 26%, indicating a commitment to sharing profits with shareholders.

Operational efficiency is marked by variability in working capital management. Debtor days are low, but inventory days are high, increasing from 236 in 2023 to 256 in 2025. Payable days are also relatively high. The cash conversion cycle has fluctuated, reaching 128 days in 2025, indicating potential inefficiencies in managing working capital.

JK Lakshmi Cement experiences variability in its segment performance, as evidenced by fluctuating sales and profit growth. The quarterly results show inconsistent YOY Sales Growth %, ranging from -21.61% to 16.39%. Similarly, YOY Profit Growth % varies significantly, from -115% to 81%. These fluctuations indicate potential instability in segment performance.

The company's increasing debt levels and interest expenses indicate a potential risk related to interest rate fluctuations. The borrowings have increased from ₹1,880 Cr in Mar 2023 to ₹2,614 Cr in Mar 2025, which could make the company more vulnerable to changes in interest rates.