The Hindu Business Line : Ambuja Cements Q1 net up on one-time gain

Mumbai, July 20 Boosted by a one-time non-recurring income of Rs 474.18 crore, Ambuja Cements Ltd on Friday reported a net profit of Rs 877.75 crore in the quarter ended June against Rs 327.49 crore in the corresponding previous period, a rise of 168 per cent.

However, excluding the one-time income, the company’s profit during the quarter under review rose 23.23 per cent to Rs 403.57 crore.

In accordance with the put and call option agreement with Holderind Investments Ltd in respect to its shareholding in Ambuja Cement India Pvt Ltd, an associate firm, the company sold 9.53 lakh equity shares for Rs 535.05 crore and realised a profit of Rs 249.33 crore (Rs 218.82 crore, net of tax).

The company also sold its property in Kalina, Mumbai for a profit of Rs 325.36 crore (Rs 255.36 crore, net of tax).

Net sales stood at Rs 1,464.36 crore (Rs 1,313.74 crore), while operating profits moved up by 16.75 per cent to Rs 593.98 crore (Rs 508.75 crore).

Considering the one-time non-recurring income and improvement in operational results, the company has declared an interim dividend of Rs 2.50 per equity share of Rs 2 each.

The company has planned a capital expenditure of Rs 3,500 crore for the next three years to augment capacity by about six million tonnes.

The first phase of the 30-MW thermal power plant at Ambujanagar in Gujarat was commissioned during the quarter, as was the one-million-tonne cement grinding unit at Farakka in West Bengal.

The one-million-tonne cement grinding unit at Roorkee in Uttarakhand will be commissioned during the current quarter, as will upgradation at the cement plant at Rabriyawas, Rajasthan.

With this, the clinkering capacity at Rajasthan will increase from 1.5 million tonnes to two million tonnes annually, the company said.

Work is going on in clinker expansion projects at Bhatapara and Rauri and associated split grinding units.

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