JK Lakshmi Cement · Material risks, their source context, and severity in the latest available quarter.
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Fuel cost expected to rise from Rs 1.65 to Rs 1.80-1.85 per unit in Q2, coinciding with monsoon-driven demand weakness. Management acknowledged this will 'hit margins' but expects industry-wide pass-through to occur. Packaging costs also up Rs 3.5-4 per bag (from Rs 134 to Rs 145), adding ~Rs 80/tonne.
Villagers near the Garbhali plant site (Mahabal Cement subsidiary) filed a PIL in Gauhati High Court claiming land ownership. JK Lakshmi was added as respondent since Mahabal is a subsidiary. Management characterized this as routine land acquisition disputes but noted it adds regulatory uncertainty to the Northeast timeline.
Middle East conflict has disrupted imported coal and petcoke supply chains, disproportionately impacting northern plants that relied more on imports. Petcoke mix increased to 40% (from 14% YoY) as substitute, but imported coal at $130-135 remains elevated. Diesel price inflation partially offset by lead distance reduction.
International proxy advisors recommended negative votes on AGM resolutions despite full legal compliance. While all resolutions passed with mutual fund support, institutional investors with foreign linkages followed proxy advisor recommendations. Management expressed frustration at inability to engage proactively before recommendations were published.
