Ambuja Cements rose 6.54% to Rs 223.20 at 11:02 IST on BSE after net profit rose 27.3% to Rs 499.27 crore on 5.7% rise in net sales to Rs 3016.92 crore in Q2 June 2018 over Q2 June 2017.
The result was announced after market hours yesterday, 25 July 2018.On the BSE, 5.46 lakh shares were traded in the counter so far compared with average daily volumes of 3.32 lakh shares in the past two weeks. The stock had hit a high of Rs 225.50 and a low of Rs 213.50 so far during the day. The stock hit a record high of Rs 291.30 on 13 September 2017. The stock hit a 52-week low of Rs 189.15 on 17 July 2018.
Net profit includes dividend of Rs 141 crore from ACC. Operating EBITDA (earnings before interest, taxes, depreciation and amortization) fell 4.45% to Rs 622 crore in Q2 June 2018 over Q2 June 2017. Better top line, improvements in productivity and efficiency parameters helped largely mitigate the rising cost pressures particularly from power and fuel in Q2 quarter.
Cement volumes increased 5.29% to 6.37 million tonnes in Q2 June 2018 over Q2 June 2017. Better off-take in infrastructure projects, improved sand availability and increased Government spending resulted in steady demand growth trends in H1-2018. Demand is expected to grow more strongly in the rural belt on account of the impetus from the increased MSP of Kharif crops and prospects of a normal monsoon, the company said.
On a consolidated basis, net profit of Ambuja Cements fell 4.70% to Rs 684.46 crore on 7.81% rise in net sales to Rs 6835.12 crore in Q2 June 2018 over Q2 June 2017.
Ajay Kapur, MD & CEO, Ambuja Cement, said that the company is well positioned to benefit from the upsurge in rural demand and the encouraging external environment. The firm's consistent customer-connect initiatives, pursuit of operational excellence and continued focus on the retail segment is helping it reduce the impact of rising cost pressures.
In its outlook, Ambuja Cement said it expects the economy to grow strongly in 2018 post successful GST transition and due to the various initiatives of the Government. Improved rural demand on account of government interventions such as the increase in the Minimum Support Price for Kharif crops, job creation and spending on rural and labour intensive infrastructure and expectations of a normal monsoon, combined with Government's focus on infrastructure development (roads, ports, irrigation and metro projects), affordable housing and housing for all programme is expected to create buoyancy in the construction sector which will have a positive impact on cement demand. However, the Company expects that increase in fuel prices and input material costs will continue in the near term. The company is well placed to benefit from the above initiatives taken by the Government.
Ambuja Cements is one of the leading cement companies in India.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)