Ambuja net marginally rises by 2.4%

Ambuja Cements, part of the Swiss giant Holcim, has posted a rise of 2.4 per cent in its net profit for the quarter ended March at Rs 334 crore compared with Rs 326 crore in the corresponding previous quarter. The company's net sales during the period rose to Rs 1,848 crore against Rs 1,655 crore last year, up 11.6 per cent.

The company sold 11.6 per cent more cement at 5.1 million tonnes in the quarter under review, whereas last year it stood at 4.8 million tonnes.

Power and fuel cost remained relatively high during this period, as a result of higher cost of coal in opening inventory, the company said. However, it added, this impact was to some extent mitigated by improved productivity of operations and control of other input costs.

In its outlook, the company said, "The market conditions may be sustained for some time. With many capacities in the pipeline, leading to increased supplies, prices may come under pressure in the second half. Efforts to improve productivity and efficiency in operating parameters will drive future profitability improvements."

On the Bombay Stock Exchange, the company's share price closed on Wednesday at Rs 79.35, up 1.99 per cent.