Cost controls aid JSW Cement’s Q1 earnings amid one-off loss
Mumbai: Billionaire Sajjan Jindal’s newly listed presence of the JSW group JSW Cement Ltd, even if it has been rearranged at costs to report a better business performance, has reported a sequential decline in income in June due to weak demand.
Cement manufacturer opened to the public last month, LaIn June quarter, 1,559.82 Crore is 9% lower than the January-March period, but 7% higher per year.
By checking the raw materials, power and fuel and load costs, the company increased its one -time profit almost doubled. La164.74 Crore in the previous quarter. The study margin rose from 13.81% to 20.7% compared to the previous year.
However, the company recorded a one -time loss LaInvestors are 1,466 Crore for transforming compulsory convertible preference stocks (CCP) into self -esteem. As a result, JSW cement, La1.366.41 Crore in the first quarter ended in June LaA year ago 16.21 Crore.
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There will be no other expense in the next neighborhoods due to CCPs.
Yes Securities Analyst Girija Ray, despite healthy volumes and stable demand in the key southern and eastern markets, JSW Cement’s income, considering the pricing power in these regions, was under pressure due to weaknesses that emerged as a surprise. In general, the cost efficiency shown in this quarter and the limited pricing power of operating discipline are remarkable.
Net debt as of June 30 (except for the CCPs), La4.566 CRORE compared to LaOn March 31, 4,204 Crore, primarily due to additional borrowing for the ongoing Capex program.
Last month, General Manager Parth Jindal said that the company’s cement sector did not want to enter a bid battle with “big men” and is not willing to inorganic growth options. Instead, it aims to reach 41.85 million tons to reach 41.85 million tons, as it lacks capital and cash flows to compete with larger competitors in the purchasing market.
During the June quarter, the company caused capital expenditure La456 Crore, Care CapEX. The company said that Odisha’s grinding unit is expected to be assigned in September 1 million tons (MTPA) in Sambalpur.
Sales volumes
The total sales volume increased by 8% annually to 3.31 million tons. This included cement sales of 1.85 million tons, an increase of 1.68 million tons of 1.68 million tons in 1.68 FY25 and an increase of 1.30 million tons of grinded granule high oven slag (GGBS) sales with an increase of 1.24 million tons from 1.24 million tons.
The company provides slag from JSW Steel to produce GGBs, a cost -effective cement substitution, which is widely used in infrastructure projects.
Silent demand in JSW cement, JK Lakshmi, Ramco Cements, Birla Corp. And reflect the low performance of peers such as Shree CEMENTS, and all of which reports sequential income decreases in April-June, a seasonally weak period for the sector.
Ray of Ray, “The industry will witness a volume increase in 2hfy26 in 2hfy26,” Ray of Ray said. “We do not see a major correction in cement pricing. However, we should pay attention to the impact of the GST ratio with the strategic movement of cement players in pricing.”
Last month, Ultratech Cement LTD President Kumar Mangalam Birla addressed the shareholders during the annual general meeting, while the company’s 26 financial year before the 27 fiscal year will reach 200 million tons per year, he said.
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Adani became the second largest cement manufacturer in the country after receiving the ACC LTD and Ambuja Ltd from Holcim in May 2022, and then Sanghi Industries Ltd and Orient Cement Ltd.
Analysts at Bob Capital Markets said that on August 25, Ultratech’s higher capacity, better efficiency and Pan-India presence, he said. “With the support of renewed infrastructure expenditures, improvement of rural sensation and a stable real estate demand, we remain optimistic about the turntable in demand in the 26 fiscal year. However, supply pressure will remain.”
July 22, according to the Morgan Stanley report, price increases were reported, especially in the eastern and southern regions, especially in June. The south has seen, increases after a long repressed pricing period.
Billionaire Sajjan Jindal’s JSW group counts JSW Cement and four other companies among the listed organizations and makes the family conglomerate one of the country’s largest industrial players.
The results were announced after Sunday hours. Since the exit of the stock market on August 14, JSW cement shares have won 5% compared to Nifty 50.
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