Q4 Results: JSW Cement Surges 9% On Strong Operating Profit as Seasonally Favourable Quarter Supports Earnings  

Mumbai, May 21: Shares of JSW Cement rallied sharply on Thursday after the company reported strong earnings, driven by strong demand and construction activity.

The stock gained as much as nine per cent in trade after the company posted a sharp rise in March-quarter earnings, benefiting from healthy demand momentum in the housing and infrastructure segments.

JSW Cement’s quarterly revenue from operations stood at ₹1,895 crore, up 11% year on year, while consolidated net profit came in at Rs 371 crore for the quarter, aided by a tax write-back of ₹147 crore compared to an expense of ₹59.5 crore in the year-ago period.

Operating profit increased 52% to₹365 crore while operating margins expanded to 19.3% from 14% a year ago. Cement companies typically see stronger volumes in the fourth quarter due to favourable construction conditions and accelerated project execution ahead of the monsoon season and fiscal year-end.

Total expenses rose 2.4% as raw material costs surged 16% and freight expenses increased 10.7% amid Iran disruption.

At the time of writing the stock had trimmed gains to trade 7% higher at Rs 129.

Demand Boosts Profitability

Investor sentiment around cement companies has remained upbeat in recent quarters as government spending on roads, housing, railways and urban infrastructure continued to support construction activity.

The stock surged as investors cheered a mega jump in profit. Source: NSE

Industry demand also improved after a sluggish start to the fiscal year, with cement makers benefiting from stronger volumes and relatively stable input costs during much of the quarter.

Brokerages and analysts have pointed to rising capacity utilisation levels and improving realisations as key drivers behind the sector’s earnings rebound.

Sector commentary in reports had noted that cement demand in India grew 6%-7% year-on-year for most of the March quarter, helped by robust construction activity in January and February.

Expansion Plans Remain in Focus

The rally in JSW Cement shares also reflects investor confidence in the company’s aggressive expansion strategy.

The Sajjan Jindal-led group has been steadily increasing cement capacity to capitalise on India’s long-term infrastructure and urbanisation growth story. The company had earlier in 2024 announced plans to invest nearly ₹3,000 crore in a new Rajasthan cement facility to strengthen its presence in northern India.

JSW Cement is among the faster-growing players in India’s cement sector and has been expanding grinding and clinker capacity across multiple states.

Cement Sector Remains in Favour

Cement stocks have broadly remained in focus amid expectations that India’s infrastructure spending cycle will remain strong over the next several years.

Market participants expect continued growth in housing, commercial real estate and public infrastructure projects to support cement demand despite concerns around monsoon disruptions and commodity-price volatility.

Source:

• https://www.nseindia.com/get-quote/equity/JSWCEMENT/JSW-Cement-Limited