JSW Cement Profit Jumps Tenfold on Improved Demand
JSW Cement reported a fourth-quarter net profit of 3.71 billion rupees as demand grew and government tax cuts took effect. Revenue rose nearly 11% while the company approved new capacity in Rajasthan and reappointed its CEO.
JSW CEMENT LTD reported a tenfold increase in fourth-quarter profit to 3.71 billion rupees ($38.5 million) following a surge in construction demand. The result marks a sharp climb from 342.2 million rupees a year ago as operational revenue rose 10.9%. Robust infrastructure spending and tax incentives are driving a sector-wide recovery for cement producers in India.
### Infrastructure Demand and Tax Cuts Drive Volumes Cement demand in India accelerated 6% to 7% year-on-year during January and February, HDFC Securities analysts said. While growth moderated in March, the government's decision to cut taxes on cement bags to 18% from 28%, effective September, supported the bottom line. JSW Cement typically records higher volumes during this period as builders rush to meet fiscal year-end targets before the monsoon season.
