Ambuja Cements, Adani Group’s building materials arm, posted a 10.86% fall in consolidated net profit at ₹763 crore for the quarter ended March, missing analysts’ estimates of it posting a net profit of ₹799 crore.

In comparison, the company had posted a net profit of ₹856 crore during the same quarter a year ago.

Ambuja Cements’ consolidated net revenue stood at ₹7,966 crore, marginally up from ₹7,900 crore posted during the comparable year-ago period. An estimate by Bloomberg analysts had expected the firm to post a consolidated net profit of ₹799 crore on revenues of ₹5,104 crore.

“Our focus on operational excellence and cost optimisation measures yielded improved profitability. We have been able to maintain our growth trajectory and further strengthen our position in the market. With the rise in construction activities across our markets, we see continuation of the elevated demand and strong volumes in the coming quarters as well,” Ambuja Cements’ whole-time director & CEO Ajay Kapur said.

During the quarter, Ambuja Cements posted a net profit of ₹502 crore on a standalone basis, an increase from ₹494 crore recorded in the year-ago period, while standalone revenues rose to ₹4,256 crore from ₹3,927 crore. The company’s board has recommended a dividend of ₹2.50 per share (125%).

The growth in revenue was despite the adverse impact on volumes due to halting of operations at Himachal Pradesh plants for 50 days. The cost fell by ₹228 per metric tonne and is expected to further reduce on cost optimisation and leveraging synergies from adjacency businesses of the group, it said.

“Business excellence initiatives are expected to further bring down the operating cost, reduce clinker factor, reduce logistics cost, improve sales of blended cement and expand the EBITDA margin,” it said.

For FY23, Ambuja Cements posted a net profit of ₹3,024 crore on a consolidated basis, on revenues of ₹38,937 crore.

The cement manufacturer followed a January-December fiscal, but recently changed the financial year end from December 31 to March 31. Accordingly, FY23 was extended by three months to March 31, 2023 (total 15 months), and hence the figures are not comparable with that of the previous fiscal.

On outlook, Ambuja Cements said it is encouraged by the Government’s increased spending on infrastructure development, particularly roads, railways, affordable housing and other schemes. This, along with the government’s “pro-active” measures will open more opportunities for the cement sector.

On Tuesday, Ambuja Cements’ shares ended down 0.48% at ₹394.40 on the BSE.