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India's JSW Cement reports larger quarterly loss due to one-off charges

India's JSW Cement reported on Tuesday a larger quarterly loss in the first results it has released since its listing in August. The company was hurt by an one-off charge relating to the conversion from preference shares to equity shares.

The combined net loss for April-June was 13.56 billion rupees (154.96 millions), compared to a loss 151.2 million rupees one year earlier.

Cement maker reported that 160 million compulsory convertible preferential shares were converted during the quarter into 235.7 millions equity shares at an additional premium of 132.75 rupies each, resulting in a valuation differential of 14.66 billion rupies. This was reported as a one-time charge by the company in its quarterly results.

The company's profit before tax, excluding this charge of 81.4 million rupies, rose to 1,65 billion rupies from 81.4 millions a year ago.

Ambit Capital analysts said that the company's quarterly earnings were boosted by a 2% increase in prices year-over-year.

The company's operating revenue increased by 8% while its expenses decreased by 1% compared to the previous period.

The company is part of the JSW Group (steel-to-autos), which has cement mills located in Western, Southern and Eastern India.

The stock's modest debut last month was due to investors who looked past the market jitters, and instead bet on the long-term prospects that emerged from India's continued emphasis on developing infrastructure. $1 = 87.5060 Indian Rupees (Reporting and editing by Sumana Mukherjee, Tasim Zaid and Sahal Muhammad in Bengaluru)

(source: Reuters)