JK Lakshmi Cement Q3 Profit Slides 26% on One-Time Labour Law Charge
JK Lakshmi Cement reported a 26% year-on-year decline in standalone net profit for the third quarter ended December 31, weighed down by a one-time expense linked to newly implemented labour codes. Profit after tax fell to ₹581.2 million from ₹783.3 million a year earlier. The company booked a one-time charge of ₹190.9 million during the quarter due to the labour law changes, which dented overall earnings performance.
Despite the profit drop, revenue from operations rose 6.1% to ₹15.88 billion, reflecting steady demand. However, total costs increased at a faster pace of 7.5%, pressuring margins. The December quarter has been challenging for Indian cement producers overall, as prices slipped 1%–3% sequentially, impacting profitability across the sector.
Analysts expect conditions to improve in the coming months after a sluggish second half of 2025. Sentiment is supported by the Indian government’s move to cut taxes on cement bags to 18% from 28%, seen as a potential demand booster. Among peers, companies such as Shree Cement, Dalmia Bharat, and Nuvoco Vistas Corporation are also navigating pricing pressures, though expectations of a recovery in construction activity could aid sector-wide growth.
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