JSW Cement reported a sharp increase in consolidated losses for the June quarter, driven by a one-time accounting expense related to the conversion of preference shares. The company posted a consolidated net loss of INR13.66bn (US$155m), compared with a loss of INR2.39 in the same period last year.
The wider loss was largely due to an exceptional non-cash charge of INR14.66bn, arising from the conversion of 160m compulsory convertible preference shares (CCPS) into 235.6m equity shares. “There will be no further expense on account of CCPS in subsequent quarters,” the company said.
Excluding this item, adjusted profit after tax stood at INR1bn. Revenue rose nearly eight per cent year-on-year to INR15.60bn, supported by higher sales volumes of 3.31Mt, up from 3.07Mt last year.
Operating performance improved strongly, with EBITDA up 39 per cent to INR3.23bn The operating EBITDA margin expanded 460 basis points to 20.7 per cent, while per-tonne EBITDA increased to INR974 from INR758.
Net debt rose to INR45.66, reflecting additional borrowings for capital expenditure of INR4.56bn during the quarter.
