A day after cement major ACC Ltd said that it recorded a marginal increase in profits for the first quarter on rising input costs, another major cement firm, Ambuja Cements Ltd (ACL), on Friday said that it had recorded a fall of 42% in its net profit to Rs 326.20 crore for the first quarter ended March 31, 2008. This is against Rs 566.25 crore in the corresponding quarter in the previous year. The fall in profit was on account of unprecedented increase in major operating costs, the company informed.
ACL shares on Friday were 0.35% down, to close at Rs 114.80 on the Bombay Stock Exchange.
Net sales for the period stood at Rs 1,654.85 crore, up 17% compared to Rs 1,591.93 crore last year. Exports for the quarter were at 0.2 million tonne, 50% lower than the same quarter last year, as volumes were diverted in order to increase availability of cement in the domestic market. As a result domestic dispatches grew 16% during the period.
Said AL Kapur, MD, ACL, ?The prices of coal, power, raw material and logistics have increased. Add to this the higher indirect tax burden due to a slew of fiscal imposition by both state and central governments.?
The company?s EBDITA reduced by 7% to Rs 1,655 crore and profit-before-tax reduced by 37% to Rs 483 crore.
The company said, ?The competitive market conditions did not allow the company to pass on the incidence of cost increase through higher prices, thereby impacting margins and lowering profit before exceptional items and tax by 7% compared to the same quarter last year.?
