Ambuja Cements Ltd.’s net profit surged in the three months ended March, largely because of a low base on the back of provisions in the year-ago period.
Net profit surged 360.7 percent to Rs 247 crore in the January-March quarter, narrowly missing the Bloomberg consensus estimates, the company said in a stock exchange filing. The consensus of analyst estimates tracked by Bloomberg pegged the profit at Rs 254.10 crore.
A low base in the corresponding quarter of the previous year led to a sharp jump in profit. The company had made provisions in depreciation and taxation in the corresponding quarter a year ago.
Net sales for the cement producer grew 5.28 percent to Rs 2,533.4 crore, in line with Bloomberg consensus estimates of Rs 2,511.40 crore.
Better pricing in the north, which contributes a large chunk of the company’s revenues, mainly led to sales growth.
Volume growth surprised at 2.73 percent year-on-year at Rs 6.02 million tonne, much higher than street expectations of a flat figure. Realisation improved by 2.5 percent year-on-year to Rs 4,208.3 per tonne.
Operating profit per tonne declined 16.5 percent year-on-year at Rs 606.4 crore over the year-ago period due to higher freight and power costs.
Freight costs rose 6.37 percent year-on-year to Rs 741.16 crore for the quarter, while power costs increased by 6.4 percent to Rs 538.8 crore over a year ago.