JSW Cement Ltd. reported a 33.1% year-on-year increase in consolidated revenue for the September quarter, even as its EBITDA margin contracted amid higher operating expenses.
Revenue from operations rose to Rs 1,912.15 crore in the second quarter of FY27, compared with Rs 1,436.43 crore a year earlier, according to the company's stock exchange filing.
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EBITDA increased 3.7% to Rs 277 crore from Rs 267 crore in the year-ago period. However, EBITDA margin declined to 14.5% from 18.6%, indicating that operating profitability did not keep pace with revenue growth.
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Consolidated profit attributable to the owners of the company stood at Rs 85.35 crore, marginally lower than Rs 86.43 crore in the corresponding quarter last year.
The decline in profit came despite a sharp reduction in tax expenses. Total tax expense fell to Rs 23.11 crore in the September quarter from Rs 45.89 crore a year earlier, a decrease of nearly 50%.
The company's total expenses increased to Rs 1,848.60 crore from Rs 1,348.72 crore in the year-ago quarter. Power and fuel expenses rose to Rs 383.39 crore from Rs 225.76 crore, while freight and handling expenses climbed to Rs 428.11 crore from Rs 328.36 crore.
Finance costs also increased to Rs 114.45 crore from Rs 100.28 crore, while depreciation and amortisation expenses rose to Rs 99.78 crore from Rs 79.53 crore.
Alongside its quarterly results, the company's board approved two capacity expansion projects aimed at strengthening its production capabilities.
JSW Cement will add a 2 million tonnes per annum (MTPA) ground granulated blast furnace slag (GGBS) grinding system at its Vijayanagar facility in Karnataka. The project is expected to require an investment of around Rs 509 crore and is likely to be commissioned by May 2028.
At its Dolvi facility in Maharashtra, the company will set up an additional cement grinding mill with a capacity of 2 MTPA. The project entails an estimated investment of Rs 569 crore and is expected to be commissioned by October 2028.
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Both projects will be financed through a combination of internal accruals and debt, the company said in its regulatory filing.
The board also approved a corporate guarantee of up to Rs 60 crore in favour of IndusInd Bank for credit facilities of the same amount to its wholly owned subsidiary, JSW Green Cement Pvt. Ltd. The funds will support the subsidiary's capital expenditure and working capital requirements.
The guarantee could expose JSW Cement to the extent of the guaranteed amount if the subsidiary fails to meet its repayment obligations, the company said.
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