Cost controls help JSW Cement's Q1 earnings amid one-time loss

Mumbai: JSW Cement Ltd, the newly listed entity of the billionaire SAJAN Jindal’s JSW group, reported a consecutive decline in revenue in the June term due to a poor demand, even if it is in cost of reporting a better operating performance. The cement maker, who became public last month, reported an income of £ 1,559.82 crore in the June quarter, 9% lower than the January-March period, but up 7%. By controlling raw materials, power and fuel and cargo costs, the company almost doubled its profits before at one time or another was up to £ 164.74 in the previous quarter. The operating margin improved to 20.7% of 13.81% compared to a year earlier. However, the company recorded a one -time loss of £ 1.466 crore, as investors converted compulsory convertible preference shares (CCPs) to equity. As a result, JSW Cement reported a loss of £ 1,366.41 crore in the first quarter, compared to a profit of £ 16.21 crore a year earlier. In the following quarters there will be no further expenses. Despite healthy volumes and a stable demand in important southern and eastern markets, JSW Cement revenue remained under pressure due to weaker realization, which was a surprise, given the price strength in these regions, says Girija Ray, analyst at Yes Securites. In general, the cost -effectiveness and operational discipline shown in this quarter are quite striking amid limited price power, Ray says. The net debt on June 30 (excluding CCPS) was £ 4,566 crore compared to £ 4,204 crore on March 31, March 31, mainly due to additional loans for the ongoing Capex program. During the quarter, the company entered into capital expenditure of £ 456 crore, including interview sheep. The company of 1 million tonnes per year (MTPA) in Sambalpur is expected to be commissioned in September, the company said in a statement. Sales volumes increased the total sales volume year-on-year by 8% to 3.31 million tonnes. This included cement sales of 1.85 million tonnes, with 10% higher than 1.68 million tonnes in the first quarter of the FY25, and the land -grew blast (GGBS) sales of 1.30 million tonnes, over 1.24 million tonnes. The company has a snail of JSW stealing to produce GGBs, a cost-effective cement replacement that is widely used in infrastructure projects. Muted question at JSW Cement reflects the underperformance of peers such as JK Lakshmi, Ramco Cements, Birla Corp. and Shree Cements, who all have a successive income in the April-June quarter, as it is a seasonally poor period for the industry. “We believe that the industry in 2hfy26 led by the pent-up question of FY25,” said Ray of Yes Securities. “While we don’t see a big correction in cement prices. However, we must pay attention to the GST rate cut, along with the strategic movement of cement players on prices.” Last month, Kumar Mangalam Birla, chairman of Ultratech Cement Ltd, while addressing the shareholders at the annual general meeting, said the company would reach its target of 200 million tonnes a year in FY26, a year before FY27’s leadership. Adani became the country’s second largest cement maker after obtaining ACC Ltd and Ambuja Ltd of Holcim in May 2022, followed by the purchases of Sanghi Industries Ltd. Analysts at Bob Capital Markets said in a August 25note that ultratech is the best place, because of the higher capacity, better effective and Pan-pan-pan-pan-pan-pan-pan pan pan pan pan pan pan pan pan pan pan pan pan pan pan pan pan van pan pan pan pan van pan pan pan pan pan van van van van van Pan van Pan prop Pan van P PN P then P then Pan Pan Pan -Pan-pan-pan-pan-pan-pan-pan pan pan pan pan pan pan pan pan pan pan pan pan pan van van Pan-Pan-India. “We remain optimistic about the collection in FY26, aided by renewed infrastructure spending, improving rural sentiment and a steady demand for real estate. However, supply pressure will remain.” Price increases were reported especially in the eastern and southern regions in June, according to a report by Morgan Stanley on July 22. The South saw the price increases after a long period of subdued prices. Billionaire Sajjan Jindal’s JSW squad counts JSW cement and four other firms among its listed entities, making the family-owned one of the country’s largest industrial players. The results were announced to the market hours. Since its stock market debut on August 14, JSW Cement shares have risen by 5% compared to an almost unchanged benchmark Nifty 50.