Ambuja Cement sees profit in Q3 up to 77% to Rs 478crore

By Realty Quarter Bureau

Part of the Swiss cement giant LafargeHolcim, the company had clocked a net profit of Rs 270.08 crore in October- December a year-ago, Ambuja Cement reported

Ambuja Cement yesterday reported 77.12 per cent increase in consolidated net profit to Rs 478.39crore for the third quarter ended December 31, helped by volume growth and increased clinker production.

Part of the Swiss cement giant LafargeHolcim, the company had clocked a net profit of Rs 270.08 crore in October- December a year-ago, Ambuja Cement said in a BSE filing. Total income during the period under review was up 10.96 per cent to Rs 6,264.81 crore as against Rs 5,645.84 crore in the year-ago period.

“Robust volume growth and record clinker production in the quarter ended December 2017 helped Ambuja Cement deliver strong performance,” Ambuja Cement MD & CEO Ajay Kapur said. Sales volume during the quarter was up 17.4 per cent to 5.87 million metric tonne (MMT) as against 5 MMT of October-December period of 2016-17. He further said:” Our strategy to focus on premium products, core markets and managing costs has delivered higher sales and EBITDA.”

Company’s total expense in December quarter was up 4.36 per cent at Rs 5,541.24 crore as against Rs 5,309.59 crore in the year-ago quarter.

In a separate filing, Ambuja Cement informed that its Board has recommended a final dividend of 100 per cent, which is Rs 2 per share.

“Together with the interim dividend of Rs 1.60 share, the total dividend for the year is Rs 3.60 per share (180 per cent,” the company said in a statement.

On the outlook, the company said the increased budgetary outlay by the government for “infrastructure development and the focus on affordable housing would benefit the cement sector.”

It also informed that Roland Kohler, executive committee member of LafargeHolcim, has been appointed as additional director of the company with effect from February 20, 2018.

Shares of Ambuja Cement closed at Rs 263.10 apiece on BSE, up 2.08 per cent from the previous close.