Ambuja Cements Tops Estimates On Improved Efficiencies And Cost-Cuts
Ambuja Cements reports 89% jump in its net profit for the December-ended quarter.
Ambuja Cements Ltd. surpassed analysts’ estimates in the October-December quarter driven by improved efficiencies and higher other income.
Standalone net profit surged 89 percent to Rs 338 crore, the cement maker said in a stock exchange filing. The consensus estimate of analysts tracked by Bloomberg stood at Rs 252 crore.
Net sales increased 21.9 percent to Rs 2,712.6 crore, exceeding analysts’ estimates of Rs 2,584.4 crore. Cement demand picked up as the effects of Goods and Services Tax and demonetisation eased, the company added.
Robust volume growth and record clinker production helped the company deliver a strong performance, Managing Director and Chief Executive Officer Ajay Kapur said in the press release.
Strong Operational Performance
Earnings before interest, tax, depreciation, and amortisation rose 61.5 percent to Rs 540.6 crore while the margin expanded 490 basis points to 15.3 percent.
During the quarter, input costs increased, as a result of rising cost of petcoke and temporary adverse fuel mix due to the ban on petcoke in Rajasthan. The impact was mitigated through improved efficiencies and cost-saving measures.Ambuja Cements’ Statement
Raw material expenses as a percentage of net sales fell to 4 percent from 11.6 percent, while other expenses as a percentage of net sales declined to 17.4 percent from 22 percent.
Other Highlights
- Other income rose 16.6 percent to Rs 48.05 crore.
- Depreciation declined 8.5 percent to Rs 142.71 crore.
- Sales volumes rose 17.4 percent to 5.87 million tonnes.
- EBITDA per tonne rose to Rs 921.02 as against Rs 669.4 in the same period last year.
- Realisation per tonne rose 3.9 percent to Rs 4,621.