Ambuja cement Q2 profit declines 45% to Rs226.35 crore
Net sales for the June quarter were reported at Rs2,492.76 crore, 8% lower than the year-ago period
Mumbai: Cement maker Ambuja Cements Ltd on Monday reported a 45% drop in net profit for the quarter ended June on account of lower operating profit and ₹ 22 crore depreciation charge.
The company posted a net profit of ₹ 226.35 crore compared with ₹ 408.70 crore in the year-ago period.
Net sales for the June quarter were reported at ₹ 2,492.76 crore, 8% lower from ₹ 2,706.35 crore reported a year back.
Operating earnings before interest, tax, depreciation and amortization (Ebitda) for the company fell 34.7% to ₹ 384 crore in the June quarter.
A Bloomberg poll of 30 brokers had estimated net sales of ₹ 2,506.9 crore and 29 brokers estimated a net profit of ₹ 262.7 crore.
“The quarter witnessed muted cement demand. Sales volume increased 1.6%, however due decrease in selling price by 10%, overall net sales value was lower. Lower cost of input materials could not fully mitigate the impact of lower sales realization," the company said in a press statement issued on Monday.
The company sold 5.88 million tonne of cement in the April-June period, 1.6% higher than a year back.
The company also announced the appointment of Eric Olsen, chief executive officer, LafargeHolcim as additional director, following the completion of the Lafarge-Holcim merger.
The company’s board also approved amalgamation of Dirk India Pvt Ltd, its fully owned subsidiary,with itself.
On Monday, shares of Ambuja Cements closed at ₹ 234.30 crore, 2.52% lower from its previous close while the benchmark Sensex closed at 27,561.38, down 1.96%.
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