Ambuja Cements has reported a 15 percent year-on-year growth in the June quarter (Q2) standalone profit net of dividend at Rs 412 crore, backed by strong operating income.
Profit for the corresponding period last fiscal stood at Rs 499.3 crore, which included Rs 141 crore dividend from its subsidiary ACC. Profit adjusted for dividend in Q2CY18 was Rs 358 crore.
"Ambuja delivers a strong performance in the quarter backed by higher realisations and accelerated cost-saving actions. Despite higher fuel costs, the company did well by optimizing logistics costs, reducing raw material and fixed costs. Cement demand growth was muted in the quarter," Bimlendra Jha, Managing Director and CEO said.
Standalone revenue from operations fell 1.3 percent to Rs 2,978.3 crore compared to year-ago due to subdued volume growth, but the same met analyst expectations due to higher realisation.
"Pace of construction activities slowed down due to liquidity issues in the market and weak demand. Cement realisation registered a growth of 9 percent year-on-year," Ambuja Cements said in its BSE filing.
Sales volume declined 8.6 percent to 5.82 million tonnes in Q2, compared to 6.37 million tonnes reported in year-ago.
Profit was expected at Rs 418 crore on revenue of Rs 2,950 crore for the quarter, as per poll of analysts conducted by CNBC-TV18.
Ambuja Cements follows January-December as its financial year.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 12 percent year-on-year to Rs 698 crore and margin expanded by 270bps YoY to 24 percent in the quarter ended June 2019.
The margin was aided by lower power & fuel cost (down 7 percent YoY), freight & forwarding expenses (down 16 percent), employee benefits expenses (down 4 percent) and depreciation (down 4 percent) in Q2.
In addition, part of the Swiss cement giant LafargeHolcim, Ambuja Cements reported a 21.5 percent year-on-year growth in consolidated profit at Rs 831.75 crore in Q2 driven by higher realisations and cost-saving measures.
Consolidated revenue grew by 3.41 percent year-on-year to Rs 7,068.8 crore in the quarter ended June 2019.
The stock settled at Rs 214.75, down Rs 0.85, or 0.39 percent on the BSE.
Note: The article has been updated with figures for the profit adjusted for dividend.
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