Ambuja Cements nets falls 14.25% to Rs 752 crore

The company had posted a net profit of Rs 877 crore for the same quarter of last financial year.

AMbuja cements
The cement manufacturer, in which Holcim holds a 63.1% stake, follows a January-December financial year.

Ambuja Cements, a part of Switzerland-based building material conglomerate Holcim Group, posted a 14.25% fall in consolidated net profit at Rs 752 crore for the second quarter ended June, impacted by rising fuel prices. The company had posted a net profit of Rs 877 crore for the same quarter of last financial year.

However, the earnings beat Bloomberg analysts’ consensus estimate, who were expecting the firm to post a net profit of Rs 644.8 crore for the quarter. The cement manufacturer, in which Holcim holds a 63.1% stake, follows a January-December financial year.

“The April-June 2022 quarter was impacted by rising fuel prices and related inflationary impacts. This was partly mitigated by improved efficiencies delivered under our ‘I CAN’ programme, which continues to deliver strong results. In addition, the Master Supply Agreement with ACC also led to strong performance on logistics costs,” Neeraj Akhoury, chief executive officer at Holcim India and managing director and chief executive officer of Ambuja Cements, said.

“Our expansion projects of 8.5 million tonne of cement capacity at Ropar and Bhatapara are on track. The ongoing Waste Heat Recovery projects (WHRS) of about 53 MW are to be commissioned in the third quarter of 2022, which will support our efficiency initiatives and lead to the delivery of our sustainability goals,” he added.

During the quarter under review, the company’s consolidated net sales rose to Rs 7,943 crore from Rs 6,899 crore recorded during the same quarter of last fiscal. However, Ebitda fell to Rs 1,115 crore from Rs 1,827 crore posted in the year-ago quarter.

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