JSW Cement reported a more than tenfold jump in fourth-quarter profit on Thursday, helped by improved demand.
* The JSW Group firm posted consolidated net profit of ₹371 crore for the quarter ended March 31 from ₹34.22 crore a year ago.
* India’s demand for cement accelerated 6%-7% year-on-year in January and February due to strong growth but moderated in March, according to analysts at HDFC Securities.
* The Indian government’s tax cut on cement bags to 18% from 28%, effective September, also helped.
* Cement companies typically record higher volumes in the fourth quarter, driven by favourable construction weather and the need to meet fiscal year-end targets before the monsoon season begins.
* The company’s revenue from operations rose 10.9% to ₹1895 crore.
* Raw material costs jumped 16%, while freight expenses rose 10.7% due to disruptions linked to the Middle East crisis.
* Total expenses climbed 2.4% to ₹1702 crore.
* The company reappointed Nilesh Narwekar as CEO and approved additional cement grinding capacity of 2.5 MTPA in Rajasthan state.
* Shares rose as much as 9.3% after results before trimming some gains to trade 5% higher.
* Larger peer UltraTech Cement beat profit view and Ambuja Cements posted a nearly threefold profit jump on strong volumes.