Ambuja Cements reported a consolidated net profit of Rs 947 crore in the March quarter, up 71 per cent from same period last year, on the back of higher sales even as tax expenses rose considerably.
Net sales of the company stood at Rs 7,715 crore in the period under review, up 23 per cent from same period last year as special product volumes grew lending support to the topline.
The consolidated earnings before interest, taxes, depreciation and ammortisation (EBITDA) margin in the March quarter stood at 24.1 percent as against 19.4 percent in the same period last year, said the company release.
Tax expense of the company in the period under review stood at Rs 413.34 crore as against Rs 264 crore in the corresponding period last year.
“Despite strong and continuing headwinds on input prices including coal, petcoke and diesel, we have made significant progress on efficiency improvement that has had a positive impact on cost evolution,” Neeraj Akhoury, chief executive officer for LafargeHolcim and managing director and chief executive officer at Ambuja Cements was quoted as saying.
India demand growth has been strong in the last quarter, which has also helped the sales volume growth and commercial performance, he added.
On capex front, the company's upcoming facility in Marwar Mundwa, Rajasthan will enhance clinker capacity by 3 MTPA and help improve cement sales by 5 MTPA. The company, meanwhile, is progressing on its ambition to reach 50 million tonne in the mid-term.
The project is scheduled to commence operations in Oct-Dec quarter of FY21, said the company.
Going ahead, the company remains cautiously optimistic amid the strong second Covid-19 wave hitting the country.
Though the second wave of pandemic warrants caution, the increased vaccination drive combined with the various stimulus proposals provided in the Union Budget 2021 and accommodative monetary and fiscal policies are expected to support economic recovery in the medium term, said Ambuja.
Rural demand is likely to remain resilient on a good projection for the agriculture sector.
"We would like to remain cautiously optimistic for the year," said the company.
Meanwhile, the company has also put in place a 24X7 COVID-19 crisis control room and are facilitating vaccination for all eligible employees and their families.
“We are closely monitoring the situation and will continue to take all necessary actions to ensure the health and safety of our employees and communities. Our Plants are continuing to operate under strict COVID protocols,” informed Ambuja Cements.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU