Ambuja Cements slips 3% post December quarter earnings

Reacting to the development, the stock of Ambuja Cements fell as much as 3% to Rs 232 on the NSE

Shares of Ambuja Cements slipped nearly 3% even as the company reported a 85% increase in its consolidated net profit of Rs 205.70 crore for the December quarter. 

The company had posted a net profit of Rs 111.04 crore in the year-ago period.

Reacting to the development, the stock of Ambuja Cements fell as much as 3% to Rs 232 on the National Stock Exchange (NSE) and featured among top five Nifty losers. 

In its outlook, the company said that it expects good cement growth in 2017, supported by the government's continued focus on housing and infrastructure development and anticipate volume effects from demonetisation to be reduced by the end of Q1 March 2017. 

The announcement of interest subsidy schemes and an interest rate cut, the recent announcement in the Union Budget for infrastructure development, including the award of infrastructure status to affordable housing and the increased budget allocation for roads, railways and irrigation will be key drivers for cement demand, it added.

The company's total income from operation increased almost two-fold to Rs 4,936.20 crore during the quarter under review, as against Rs 2,384.84 crore in the corresponding quarter of the last fiscal, Ambuja said in a BSE filing. 

"During the year, Holcim India Pvt Ltd has been amalgamated with the company from the effective date August 12, 2016 pursuant to scheme of amalgamation," the company said. 

Ambuja follows January-December financial year.