Ambuja Cement net rises 34% on better realisation

Our Bureau Mumbai | Updated on February 18, 2021

Neeraj Akhoury, Managing Director, Ambuja Cement

Ambuja Cement said on Thursday its consolidated net profit jumped 34 per cent in the December quarter to ₹968 crore, against ₹722 crore in the previous-year period, on higher realisation, lower cost and tax write-back.

Income from operation was up 5 per cent at ₹7,453 crore (₹7,126 crore). The company has declared a dividend of ₹1 a share. It had a write-back of ₹265 crore by adopting the lower corporate tax offered by the government.

On a standalone basis, Ambuja Cement’s Q3 net profit increased 9 per cent to ₹497 crore (₹455 crore). Revenue from operations was up 12 per cent at ₹3,515 crore (₹3,136 crore). Total expenses rose 5 per cent to ₹2,896 crore (₹2,761 crore).

Sales volume was up 7 per cent at 7.01 million tonne (6.54 mt). Ebitda during the quarter was higher at ₹768 crore (₹548 crore) while Ebitda margin increased to 22 per cent (18 per cent).

Neeraj Akhoury, Managing Director, Ambuja Cement, said margin in the quarter expanded on the back of higher price and volume.

“We have witnessed significant acceleration in volumes under the master supply agreement with ACC,” he said.

Total operating cost per tonne declined 2 per cent supported by operational efficiency programs in the plants and logistics efficiencies. These have been partly compensated due to impact of rising fuel costs.

Ambuja generated ₹2,606 crore from operations, led by improved performance and efficient working capital management.

The greenfield project at Marwar Mundwa, Rajasthan, will be commissioned this year and improve its market position in the North and West regions, it said.

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Published on February 18, 2021
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