New Delhi: Ambuja Cements Ltd, part of the Swiss cement maker LafargeHolcim, on Tuesday reported an 89% jump in December quarter profit, helped by higher cement sales volume.
Standalone profit rose to Rs338 crore in Q4, from Rs179 crore a year earlier. Standalone cement sales volume rose to 5.87 million tonnes in the quarter, from 5 million tonnes in the same period last year. Net quarterly sales rose 19% to Rs2,612 crore.
“Robust volume growth and record clinker production in the quarter ended December 2017 helped Ambuja Cements deliver strong performance,” Ambuja Cements managing director and chief executive officer Ajay Kapur said.
Sales volume during the quarter was up 17.4% to 5.87 million metric tonne (MMT) as against 5 MMT of October-December period of 2016-17.
He further said: “Our strategy to focus on premium products, core markets and managing costs has delivered higher sales and Ebitda.”
Company’s total expense in December quarter was up 4.36% at Rs5,541.24 crore as against Rs5,309.59 crore in the year-ago quarter.
In a separate filing, Ambuja Cements informed that its board has recommended a final dividend of 100%, which is Rs2 per share. “Together with the interim dividend of Rs1.60 share, the total dividend for the year is Rs3.60 per share (180 per cent),” the company said in a statement.
On the outlook, the company said the increased budgetary outlay by the government for “infrastructure development and the focus on affordable housing would benefit the cement sector.”
It also informed that Roland Kohler, executive committee member of LafargeHolcim, has been appointed as additional director of the company with effect from 20 February 2018.
On Tuesday, shares of Ambuja Cements Ltd rose 2.08% to Rs263.10 on a day the benchmark Sensex fell 0.21% to 33,703.59 points.