Ambuja Cement Q2 net profit rises 40.4%
Mumbai: Ambuja Cement Ltd on Thursday said its consolidated net profit for the September quarter rose 40.4% from a year ago. However, the company said that the figures are not comparable with those of corresponding period as the company has merged with Holcim India Pvt. Ltd in August 2016.
Consolidated net profit for the quarter stood at Rs.216.11 crore against Rs.153.93 crore a year ago. According to Bloomberg analyst estimates, the company expected to post a net profit of Rs.212.60 crore while net sales at Rs.1,983.60 crore. Net sales jumped 113.27% from a year ago to Rs.4,477.33 crore.
On standalone basis, the company reported a net profit of Rs.277.02 crore, up 80.45% from Rs.153.57 crore. Net sales fell 4.35% to Rs.2,004.28 crore.
On 20 July, the Cabinet Committee on Economic Affairs (CCEA) approved Ambuja Cements Ltd’s planned acquisition of a 24% stake in Holcim India Pvt. Ltd, paving the way for the proposed restructuring of the holding pattern of Holcim’s India units, ACC Ltd and Ambuja Cements Ltd.
In a two-stage restructuring announced in July 2013, Ambuja planned to acquire a 24% stake in Holcim India Pvt. Ltd for a cash consideration of Rs.3,500 crore. This was to be followed by a stock merger between Holcim India and Ambuja.
The company said its sales realisation improved by 2.8% while sales volumes fell 6.6% due to heavy monsoon in core markets and subdued demand which resulted 2.3% fall in operating margin. The other reason for weak operating margin was due to higher diesel costs and maintenance expenses.
On the outlook front, the company said it expects that the construction activities likely to pick up post monsoon season and the medium to long term outlook for cement demand may remain positive considering better monsoon this year and governments focus on housing and infrastructure development. The company will continue to focus on improving operational efficiencies, it added.
At 3.20pm, Ambuja Cement Ltd was trading at Rs.242 on BSE, up 0.58% from previous close while India’s benchmark Sensex Index fell 0.38% to 27,422.23 points.