Ambuja Cements consolidated net up 7% at Rs 555 cr

Higher sales, value-based pricing offset rising fuel prices, packing material costs

Ambuja Cements, part of the global cement giant LafargeHolcim, has posted a rise of 6.9 per cent in its consolidated net profit after taxes and minority interest at Rs 555 crore for the quarter ended 30 June compared with Rs 519 crore in the previous corresponding quarter. The company's consolidated net sales during the April-June period were up 14.7 per cent at Rs 6,145 crore against Rs 5,359 crore.

The consolidated sales volume of Ambuja were up 7.6 per cent at 12.78 million tonne against 11.88 million tonne a year ago. It is to be noted that ACC is a subsidiary of Ambuja Cements.

On the standalone basis, Ambuja Cements reported a decline of Rs 13.3 per cent in its net profit at Rs 392 crore against Rs 452 crore a year ago. It was mainly on the back of Rs 56 crore dividend the company received from ACC in June quarter of 2016. The company's sales volume were up 5 per cent at 6.05 Mt.

Ajay Kapur, managing director and CEO of Ambuja Cements, said, "We are improving sales performance and EBITDA, despite rising manufacturing costs, especially power and fuel on the back of rising petcoke prices."

In a statement, Ambuja said that the top line growth, driven by increased sales and value-based pricing, helped mitigate higher costs due to rising prices of fuel, packing and other manufacturing material.

It further added that net profit after tax stood at Rs 392 crore against Rs 452 crore in the corresponding quarter last year on the back of dividends of Rs 56 crore which Ambuja received from ACC in Q1 of 2017, whereas the same was received in Q2 of 2016 for last year.

On the BSE, shares of Ambuja Cements traded firm and closed nearly half a percentage point up at Rs 267.8.