India`s JSW Cement posts quarterly profit surge on improved demand
India's 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 3.71 billion rupees ($38.5 million) for the quarter ended March 31 from 342.2 million rupees 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 18.95 billion rupees.
• 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 17.02 billion rupees.
• 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.
($1 = 96.3300 Indian rupees)
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