Ambuja Cements Ltd.’s profit for the quarter ended March missed estimates.
Standalone net profit rose 10.2 percent year-on-year to Rs 271.1 crore, the cement maker said in a stock exchange filing. The consensus of analyst estimates tracked by Bloomberg stood at Rs 297.3 crore.
Net sales rose 11.9 percent to Rs 2,862.6 crore, marginally missing the estimate of Rs 2,891.7 crore.
Earnings before interest, tax, depreciation, and amortisation rose 28.7 percent to Rs 507.3 crore, while its margin expanded 140 basis points to 17.7 percent.
Our focus on reducing costs, improving productivity, and increasing capacity utilisation backed bystrong attention to the retail segment and robust sales from our premium value added products led to a strong quarter with 29 percent ebitda growth.Ajay Kapur, MD and CEO, Ambuja Cement
Shares of Ambuja Cements erased gains and fell as much as 2.7 percent after the results were announced. The stock fell 14.4 percent between January and March.
Also Read: ACC-Ambuja Cements Merger Put On Hold
The company had announced earlier this year that its merger with ACC Ltd., proposed in May last year, was put on hold. “There are certain constraints to implementing the merger at present,” said the cement majors in separate stock exchange filings without elaborating on what they were. The merger, they said, remains the ultimate goal.