India's JSW Cement posts lower second-quarter profit as weak pricing, higher costs hurt margins
India's JSW Cement posts lower second-quarter profit as weak pricing, higher costs hurt margins Oct 27 (Reuters) - India's JSW Cement Ltd JSWC.NS reported lower second-quarter profit on Tuesday, as weaker cement prices and higher fuel, freight and other input costs pressured margins.
The JSW Group firm's consolidated net profit fell to 853.5 million rupees ($8.97 million) in the quarter ended September 30 from 864.3 million rupees a year earlier; revenue from operations jumped 33% to 19.12 billion rupees
Raw material costs shot up 40% while freight and fuel expenses soared about 30% and 70%, respectively; total expenses climbed 37% to 18.49 billion rupees
Jefferies had forecast cement sector profitability weakening, expecting 7% lower aggregate EBITDA in the quarter as flat-to-lower prices fail to offset costs
Systematix analysts said a 10-20-rupee-per-bag price increase in September in most regions would likely help cement makers in the second half; Macquarie expects further increases after the festive season
JSW Cement approved adding 2 million tonnes per annum capacity each at its Vijayanagar and Dolvi grinding systems
Rival Ultratech Cement ULTC.NS missed second-quarter profit estimates last week, hurt by higher input costs
($1 = 95.14 Indian rupees)
(Reporting by Payel Das and Anushka Rajvedi in Bengaluru; Editing by Ronojoy Mazumdar)
((Payel.Das@thomsonreuters.com;))
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