Ambuja Cements, part of LafargeHolcim, has posted a rise of 50 per cent in its consolidated net profit after tax for the quarter ended September at Rs 351 crore compared with Rs 234 crore in the corresponding previous quarter. Its consolidated net sales stood at Rs 5,318 crore against Rs 4,417 crore in the same quarter last year.
The company, which owns ACC, sold 10.98 million tonne of cement during the quarter, a rise of 14.9 per cent against 9.56 million tonne. The combined capacity of Ambuja (including ACC) stands Rs 63 million tonne per annum.
Ajay Kapur, managing director, Ambuja Cements, said, "We have focused on building brand equity and providing value to our customers through differentiated offerings for individual home builders and infrastructure segments. Our strategy to focus on key markets, premium products and value based pricing has paid off, leading to strong net sales and EBITDA growth."
The stocks of Ambuja traded strong on Tuesday and closed at Rs 282.25 on the BSE.
In its outlook, Ambuja said that government had identified the construction and infrastructure sector as one of the key sectors that will help improve overall economic growth. "Infrastructure projects in the areas of power, irrigation, roads, metros and railways, as well as dedicated freight and industrial corridors, are likely to generate strong cement demand in the country," said Ambuja in a statement.
The company is maintaining a positive stance on increased spending on affordable and low cost housing coupled with the normal monsoon which is expected to boost rural economy which augurs well for the cement industry.