Ambuja Cement profit rises 10% in September quarter
Mumbai: Ambuja Cement Ltd on Tuesday reported a 10% year-on-year increase in standalone net profit to Rs272.4 crore in the quarter ended September.
Net sales rose 14.4% to Rs2,282 crore even as sales volume grew slower at 11.6% to 5.02 million tonnes.
Earnings before interest, taxes, depreciation and amortization (Ebitda), an indicator of operating profitability, rose 15% from the year-ago period to Rs354.4 crore.
The Ebitda margin increased by just 9 basis points to 15.53%.
Ebitda per tonne rose 3.1% to Rs706.
The company attributed the muted margin expansion to higher input costs.
“Although top line grew strongly on account of higher sales growth and value-based pricing, we faced cost pressures on account of rising input costs on fuel, packing and other raw material,” Ambuja Cement said in a statement.
Both Ambuja’s revenue and profit exceeded Bloomberg consensus analyst estimates.
The analysts had estimated revenue of Rs2,280 crore and profit of Rs240.3 crore.
On its future outlook, the company said the government’s focus on infrastructure and construction sectors was likely to boost cement demand.
“Furthermore, increased spending on affordable and low cost housing coupled with the normal monsoon is expected to boost the rural economy which augurs well for the cement industry,” it added.
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