**JSW Cement Reports Revenue Decline Amid Cost Control Efforts**
JSW Cement Ltd, the newly listed arm of Sajjan Jindal’s JSW Group, has reported a sequential decline in revenue for the June quarter, attributed to weak demand. Despite this, the company managed to improve its operating performance by effectively managing costs. The cement manufacturer, which went public last month, recorded a revenue of ₹1,559.82 crore for the June quarter, marking a 9% decrease from the January-March period, although it represents a 7% increase year-on-year.
By controlling expenses related to raw materials, power, fuel, and freight, JSW Cement nearly doubled its profit before one-time items to ₹164.74 crore compared to the previous quarter. The operating margin also saw an improvement, rising to 20.7% from 13.81% a year earlier. However, the company faced a significant one-time loss of ₹1,466 crore due to the conversion of compulsory convertible preference shares (CCPS) into equity, resulting in a net loss of ₹1,366.41 crore for the first quarter ending in June, compared to a profit of ₹16.21 crore in the same period last year.
Despite healthy sales volumes and stable demand in key southern and eastern markets, revenue pressures persisted due to lower realizations, which surprised analysts given the pricing strength in these regions. Girija Ray, an analyst at YES Securities, noted that the company’s cost efficiency and operational discipline were commendable amid limited pricing power.
As of June 30, the net debt (excluding CCPS) stood at ₹4,566 crore, up from ₹4,204 crore on March 31, primarily due to additional borrowing for ongoing capital expenditure projects. Managing Director Parth Jindal indicated that the company is not pursuing inorganic growth options, preferring to focus on organic expansion to reach its target of 41.85 million tonnes, citing a lack of capital to compete with larger rivals in acquisition bids.
During the June quarter, JSW Cement invested ₹456 crore in capital expenditures, including maintenance costs. The company anticipates commissioning a 1 million tonnes per annum grinding unit in Sambalpur, Odisha, by September. Total sales volume increased by 8% year-on-year to 3.31 million tonnes, comprising cement sales of 1.85 million tonnes—up 10% from 1.68 million tonnes in Q1 FY25—and ground granulated blast furnace slag (GGBS) sales of 1.30 million tonnes, a 5% increase from 1.24 million tonnes.
The muted demand experienced by JSW Cement reflects a broader trend among peers such as JK Lakshmi, Ramco Cements, Birla Corp., and Shree Cements, all of which reported sequential revenue declines in the April-June quarter, a typical seasonal pattern in the industry.
**FAQ**
**What factors contributed to JSW Cement’s revenue decline in the June quarter?**
JSW Cement’s revenue decline was primarily due to weak demand and lower realizations, despite the company managing to control costs effectively.
