Ambuja Q3 net up over 12%

Buoyed by 15.4 per cent growth in sales,Ambuja Cements’ net profit rose by 12.5 per cent to Rs 171 crore in the July-September quarter in 2011.

The company,which follows January-December as accounting year,had reported 152 crore net profit in the corresponding period last year,it said in a statement.

Net sales of the company,in which Swiss major Holcim holds a majority stake,went up to Rs 1,805 crore during the July-September quarter,spurred by a 7.6 per cent rise in sales volume at 4.69 million tonnes.

Ambuja’s net sales were at 1,564 crore a year-ago.

“The lower rate of growth in EBIDTA compared to net sales was on account of substantial increase in the costs of raw material (up 11 per cent year-on-year),power and fuel (up 12 per cent YoY) and freight and forwarding expenses (up 21 pc YoY),” it said.

Ambuja Cements said the cement industry continues to face “certain critical constraints” in rising cost of raw material and power and fuel,increasing cost of freights and obtaining clearances for land acquisition and mining rights for mineral based infrastructure industries.

“Despite these negative trends,the company is cautiously optimistic about the future,” Ambuja said,adding these would not deter it to invest in improving productivity aimed at increasing both the topline and margins.