Ambuja net rises 11%

Ambuja Cements Ltd (ACL), the country's third largest cement maker, said on Friday that net profit rose 11.72 per cent to Rs 292.44 crore in the quarter ended 30 September, 2007, against Rs 261.76 crore in the corresponding period last year.

Net sales during the quarter grew 14.93 per cent to Rs 1,299.93 crore as compared with Rs 1,131.03 crore in the previous corresponding period.

Higher sales, better prices on buoyant demand helped the company post good quarterly numbers. Operating profit for the September quarter stood at Rs 393.15 crore against Rs 381.42 crore in the corresponding quarter last year.

Operating costs during the period were impacted by higher raw material consumption. Operations at the Ambujanagar unit in Gujarat were disrupted in August-September by severe flooding.

The company said it expected cement demand to be buoyant with the construction industry continuing to be one of the major drivers of economic growth.

"Consequently, residential as well as infrastructure projects would register rapid growth and cement demand, therefore, is likely to remain buoyant," the company said.

In the quarter under review, ACL sold 3.82 million tonnes of cement against 3.61 million tonnes during the same period last year.

Similarly, production increased by 5.85 per cent to 3.8 million tonnes in the period against 3.59 million tonnes in the corresponding period last year.

ACL, in which the world's second largest cement maker Holcim owns 36 per cent, is increasing its manufacturing capacity to 22 million tonnes per annum (mtpa) within two years from the current 16 mtpa.

On Thursday, Holcim deferred a plan to buy an additional 20 per cent in ACL from public shareholders without giving any reason.

ACL has already commissioned a one million tonne grinding unit in Uttarakhand. It also upgraded clinker capacity at its Rajasthan plant from 1.6 mtpa to 2 mtpa. Other clinkerisation projects amounting to 4 mtpa are on schedule. The company also plans to build a new 1.5-million-tonne grinding unit in Gujarat.

ACL shares closed at Rs 139.60 on the Bombay Stock Exchange on Friday, down 3.86 per cent from its previous close.