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Ambuja Cement’s consolidated net profit for the second quarter of the current year was down 25 per cent at ₹865 crore against ₹1,161 crore during the same period last year, on the back of lower realisation and higher cost.
The company follows January-December financial year. Revenue from operations was up 15 per cent at ₹8,033 crore (₹6,978 crore). EBITDA was down 29 per cent at ₹685 crore (₹960 crore).
On a standalone basis, the net profit was up 45 per cent at ₹1,048 crore (₹723 crore) due to other income of ₹632 crore (₹161 crore).
Revenue was up 18 per cent at ₹3,993 crore (₹3,371 crore) in the quarter under review. Total expenses increased to ₹3,488 crore (₹2,566 crore) on higher power and fuel cost of ₹1,320 crore (₹788 crore) and freight cost of ₹905 crore (₹789 crore).
The other income includes a dividend of ₹545 crore received from its subsidiary ACC and ₹14 crore from sale of its non-operational subsidiary Dang Cement Industries in Nepal. EBITDA was down 39 per cent at ₹1,115 crore (₹1,827 crore). EBITDA per tonne was down at ₹926 (₹1,494).
The company also reversed a tax provision of ₹159 crore and interest of ₹31 crore (recognised in other income) in the quarter under review.
Sales volume was up 15 per cent at 7.39 million tonne (6.42 mt).
Inflationary pressure
Neeraj Akhoury, Managing Director and Chief Executive Officer, Ambuja Cements, said the rising fuel prices and related inflation impacted the company’s cost structure. This was partly mitigated by improved efficiencies and the Master Supply Agreement with ACC also led to strong performance on logistics costs.
The expansion projects of 8.5 mt of cement capacity at Ropar and Bhatapara are on track. The ongoing waste heat recovery projects of 53 MW will be commissioned by September quarter, he said.
Earlier, the company’s subsidiary ACC reported 60 per cent fall in net profit at ₹227 crore in the quarter under review.
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