JSW Cement Q1 Results: Net Loss Widens To Rs 1,356 Crore On Exceptional Expense

The recently listed JSW Cement Ltd.'s loss in the April-June quarter of this financial year widens to Rs 1,356.17 crore in quarter ended June, as per the results declared on Tuesday.

In comparison, the net loss stood at Rs 15.12 crore in the previous quarter. The net loss has widened due to a one-time exceptional expense of Rs 1,466.38 crore.

Before the company's recently floated initial public offering, the Compulsorily Convertible Preference Shares were converted into equity, leading to a big one-time non-cash accounting expense. This hit the reported profit, but the underlying business still made Rs 100 crore adjusted profit, according to a press release.

Meanwhile, the revenue increased by 7.8% year-on-year for the three months ended June, reaching Rs 1,559.82 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 61% year-on-year to Rs 322.65 crore. The Ebitda margin expanded to 20.7%.

The net debt of JSW Cement as of June 30, (excluding CCPS) was Rs 4,566 crore as against Rs 4,204 crore on March 31, primarily due to additional borrowing for the ongoing capex program.

During the quarter, total volume sold increased by 8% year-on-year to 3.31 million tonnes. Of this, cement volume sold was 1.85 million tonnes, representing an increase of 10% year-on-year, versus 1.68 million tonnes in the first quarter of this fiscal. The volume sold of ground granulated blast furnace slag was 1.30 million tonnes representing an increase of 5% year-on-year, versus 1.24 million tonnes in the same quarter last year.

The quarterly earnings were shared after the market hours. The stock settled 1.3% higher at Rs 153.73 apiece on the NSE, compared to a 0.18% decline in the benchmark Nifty 50.

JSW Cement shares have risen 5.24% since its listing in August.