The Hindu Business Line : Ambuja Cements profit dips 34%

Mumbai, July 25 Ambuja Cements has reported a 34 per cent fall in net profit at Rs 577 crore in the first quarter ended June 30, against Rs 878 crore recorded in the same period last year.

Sales turnover was up 7 per cent at Rs 1,570 crore (Rs 1,464 crore). While domestic despatches were up 5 per cent at 4.3 million tonnes (mt), exports declined 70 per cent to 76,000 tonnes due to the Government ban on exports. The company attributed the rise in sales turnover to a moderate price increase and a change in mix of export and domestic dispatches.

Mr A.L. Kapur, Managing Director, said “Cost pressures continue to be unrelenting. Fuel and power costs in our plants are significantly higher by 34 per cent year-on-year, in particular, the cost of imported coal, which tracked global oil developments and shows no sign of abatement in the near future.”

Cement price increase in the quarter was 5 per cent year-on-year and 1 per cent on a sequential basis. Consequently, the EBITA (earnings before interest, tax and amortisation) is 18 per cent lower at Rs 485 crore, the company said.

Interim dividend

The board has approved an interim dividend of Rs 1.20. The record date will be August 11.

The company shares on BSE were down 1.2 per cent at Rs 82.

Related Stories:
Ambuja Cement net falls 42% on high input cost

More Stories on : Cement | Gujarat Ambuja Cements Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page