 "Jaypee Group to sell cement arm by March for Rs 19,500 cr")
Ambuja Cements, a Holcim group company, beat Street estimates with a 77 per cent rise in its net profit at Rs 400 crore for the quarter ended June against analysts' estimates of Rs 330 crore. In the year-ago quarter, Ambuja had clocked a profit of Rs 226 crore.
Ambuja shares hit a 52-week high on the BSE and closed at Rs 269.95 apiece on Tuesday, an increase of 0.5 per cent from the previous close. The results were declared after market hours.
The net sales of the company was up 1.9 per cent at Rs 2,541 crore compared with Rs 2,493 crore in the same quarter last year.
This is despite the company witnessing a two per cent dip in its sales volume as it sold 5.76 million tonnes of cement during the quarter against 5.88 million tonnes in the year-ago period.
Better prices and significantly lower energy costs helped the 27 million tonnes cement maker put up a good quarterly show. The company being a regional player with focus on west, north and central India, benefited from uptick in cement prices in the northern region. With better realisation, the cost-saving initiative helped the company report improved operating performance.
“Improved prices and reduction in cost have resulted in increased operating Ebitda (earnings before interest, taxes, depreciation and amortisation) and net profit,” Ambuja stated. The company’s Ebitda was up 56.5 per cent to Rs 601 crore against Rs 384 crore a year ago.
“Energy cost was significantly lower by 27 per cent due to low fuel prices and increased usage of pet coke in kiln at 60 per cent against 45 per cent last year,” added Ambuja.
The company is hopeful of a pick-up in construction activities after monsoon. According to it, the medium- to long-term outlook for cement demand remains positive considering above-normal monsoon forecast this year and the government's focus on housing, concrete roads, smart cities, and infrastructure development.
Ambuja's board has approved an interim dividend of Rs 1.60.
