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JSW Cement Ltd, part of the JSW Group led by Sajjan Jindal, reported a loss of INR 1,366.41 crore in the first quarter ending June, primarily due to a one-time expense from the conversion of compulsory convertible preference shares (CCPS) into equity. Despite this, revenue grew year-on-year to INR 1,559.82 crore, and cost control measures helped the company nearly double its profit before one-offs, improving the operating margin to 20.7% from 13.81% last year. Management continues to focus on organic growth to achieve its expansion targets.
JSW Cement Ltd reported a first-quarter loss of INR 1,366.41 crore, a sharp drop from a profit of INR 16.21 crore in the same period last year. The decline was largely driven by a one-time expense of INR 1,466 crore linked to the conversion of compulsory convertible preference shares (CCPS) into equity. The company confirmed that no further expenses related to CCPS are expected in upcoming quarters. Advertisement
Revenue for the quarter reached INR 1,559.82 crore, down 9% from the previous quarter but up 7% compared with the same quarter last year. The fall in revenue from the previous quarter was attributed to weak market demand, which affected pricing power, especially in southern and eastern regions where the company has significant operations. Despite the challenging environment, the company nearly doubled its profit before one-time items to INR 164.74 crore through careful cost management, including controlling expenses for raw materials, power, fuel, and freight. This drove the operating margin up to 20.7%, compared with 13.81% a year earlier.
The company's net debt, excluding CCPS, increased to INR 4,566 crore from INR 4,204 crore in the previous quarter, reflecting additional borrowings for ongoing capital expenditure. Managing Director Parth Jindal highlighted that JSW Cement is concentrating on organic growth to reach its target production capacity of 41.85 million tonnes, as the company does not currently have the capital or cash flow to pursue acquisition-based growth like some of its larger competitors. He also noted that focusing on internal growth would allow the company to maintain operational discipline while expanding its production footprint.
JSW Cement has been working to strengthen its market position despite slower demand. Over the past year, the company has invested in improving efficiency and reducing operational costs. These measures have helped the company remain resilient and maintain profitability before exceptional items, demonstrating its ability to manage challenges while preparing for growth opportunities in the medium term.
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