Ambuja Cements Q4 profit declines 39%

On a consolidated basis, the cement major posted a 39.3% decline in net profit to Rs 591.54 crore in Q4 December 2019 as compared to Rs 974.29 crore reported in Q4 December 2018.

Net sales rose 6% to Rs 7126.44 crore in Q4 December 2019 over Q4 December 2018. The result was announced after market hours on Thursday, 20 February 2020.

Profit before tax (PBT) for Q4 December 2019 stood at Rs 855.86 crore, rising by 43.3% from Rs 597.14 crore reported in Q4 December 2018.

EBITDA surged 23% to Rs 1117 crore in Q4 December 2019 as compared to Rs 908 crore registered in Q4 December 2018. EBITDA margin grew by 210 basis points year-on-year (YoY) and stood at 16% in Q4 December 2019.

Consolidated sales volume stood at 14.33 million tonne in Q4 December 2019 as compared to 13.63 million tonne posted in Q4 December 2018.

The company in filing said that higher budgetary allocations to Government's core rural schemes on affordable housing, infrastructure and farm income augured well for cement demand. Continued focus on development of transport infrastructure, railways, metro, airports along with the recently announced Rs 102 lakh crore under the National Infrastructure Pipeline (NIP) in the next 5 years, is also expected to drive demand.

Commenting on company's Q4 performance, Bimlendra Jha, managing director & CEO, said "Ambuja continued its growth momentum and delivered yet another strong quarter, driven by a robust top-line performance, good traction in power & fuel and logistics costs reduction. We also launched a range of speciality products in construction solutions segment to enhance customer reach and value. Our greenfield project at Marwar Mundwa, Rajasthan, is well on track and will add 4.5 Mn tonnes to cement volumes in our key growth markets."

Ambuja Cements, a part of the global conglomerate LafargeHolcim, is among the leading cement companies in India. The firm operates through cement and cement related products segment.

Shares of Ambuja Cements were trading 0.1% higher at Rs 206.

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