JSW Cement Q1 net profit at ₹161 cr, revenue up 22% on demand, price hikes

India's JSW Cement reported a first-quarter profit on Thursday, as healthy demand and price hikes helped offset ​cost pressure.

The JSW Group firm posted a consolidated net ​profit of 1.61 billion rupees ($16.9 million) in the quarter ended ‌June 30, compared with a loss of 13.56 billion rupees a year earlier, when the company had logged an exceptional charge of 14.66 billion rupees.

The firm's profit before exceptional items and tax during the quarter rose to 1.90 billion rupees, from 1.65 billion rupees a year ago.

Analysts had expected Indian cement makers to report steady first-quarter sales volume growth, helped by solid demand from infrastructure and institutional projects, with JSW ‌Cement in particular seen benefiting from the ramp-up of its north India plant.

 

India's cement output grew 8.2% in April, 8.4% in May and 9.8% in June.

Average cement price across the country rose about 4% on a quarter-on-quarter basis, lower than analysts' expectations.

JSW Cement's quarterly revenue from operations rose 21.6% from a year ​earlier to 18.96 billion rupees.

Prices of petcoke and coal, key fuels for ‌cement kilns, remained elevated amid disruptions linked to the Middle East conflict.

JSW Cement reported a 22.7% increase in raw ​material ‌costs during the quarter, while freight and fuel expenses rose 14.2% and ‌43.7%, respectively.

Total expense climbed 26.5% to 17.93 billion rupees.

Larger rivals Ultratech Cement reported a rise in June-quarter profit on strong ‌volumes, ​while Ambuja Cements' ​profit dropped on rising fuel costs.

JSW Cement also approved a fundraise of 5 billion rupees via issue of ‌non-convertible debentures.

($1 = 95.4400 ​Indian rupees)