Ambuja Q1 Net declines 23%

The sales during the period grew 19 per cent to Rs 2,633.31 crore.

Cement major Ambuja Cement today posted a 23 per cent decline in standalone net profit for the March quarter at Rs 312.22 crore against Rs 407.48 crore in the year-ago period,due to a steep escalation in input costs.

The sales during the period grew 19 per cent to Rs 2,633.31 crore compared to Rs 2,212.51 crore a year ago.

“Cost push from higher energy cost and rail freight increase is expected to keep the profit margins under pressure,despite improved realisation,” Ambuja Cement Managing Director Onne van der Weijde said in a statement.

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During the quarter,the cement production increased by 9.1 per cent at 55.9 lakh tonnes,while sales volumes rose by 9.8 per cent to 60.5 lakh tonnes.

“Backed by revival in infrastructure and construction activities,cement demand over the last few months have been robust. Continuity in overall current demand would be key to maintain the current momentum. We will continue thrust upon investing resources to improve operational efficiency,” he said.

During the quarter,the company acquired additional 5 per cent shareholding of the Nepal-based Dang Cement Industries for Rs 113 lakh. With this,Ambuja’s total shareholding rose to 90 per cent with a total equity investment of Rs 20.25 crore.

In the quarter,Ambuja subscribed to 2,72,700 equity shares of Rs 10 each representing 27.27 per cent paid-up equity share capital of Wardha Valley Coal Field,a joint venture company formed for captive coal mining. The total equity investment as of date is Rs 82 lakh.