Ambuja Cements declines after Q3 results

Ambuja Cements fell 1.72% to Rs 197.70 at 11:08 IST on BSE after consolidated net profit rose 12.73% to Rs 396.01 crore on 11.87% decline in net sales to Rs 6,017.58 crore in Q3 September 2018 over Q3 September 2017.

The result was announced after trading hours yesterday, 23 October 2018.

Meanwhile, the S&P BSE Sensex was up 95.24 points, or 0.28% to 33,942.47.

On the BSE, 23.93 lakh shares were traded in the counter so far compared with average daily volumes of 2.23 lakh shares in the past two weeks. The stock had hit a high of Rs 203.20 and a low of Rs 193.05 so far during the day. The stock hit a 52-week high of Rs 288.65 on 31 October 2017. The stock hit a 52-week low of Rs 189.15 on 17 July 2018.

On a standalone basis, net profit of Ambuja Cements declined 34.44% to Rs 178.60 crore on 12.58% rise in net sales to Rs 2613.93 crore in Q3 September 2018 over Q3 September 2017.

Standalone cement sales volume increased 8.76% to 5.46 million tonnes in Q3 September 2018 over Q3 September 2017, backed by a favourable demand trend.

Ajay Kapur, MD & CEO, Ambuja Cement, said that the company's continued focus on growing the topline with its well-defined marketing and commercial strategies focusing on the retail consumer, value added portfolio of products and services and selling more in its core markets helped deliver a good net sales growth. Sharp cost management helped mitigate the impact of headwinds coming from oil/fuel and rupee volatility and enabled the firm to deliver good results.

In its outlook, Ambuja Cements said that GDP growth in the last quarter was encouraging backed by good monsoon. Continued focus on GDP growth and infrastructure projects by the Government and a strong push on Housing for All and affordable housing led to good demand growth in the cement sector. Going forward the company expects this to continue and accelerate further. The company is well placed to benefit from the above initiatives taken by the Government.

Ambuja Cements, a part of the global conglomerate LafargeHolcim, is among the leading cement companies in India.

Powered by Capital Market - Live News