Industry

Ambuja Cements posts 28% drop in net profit to ₹592 crore in April-June

Ambuja Cements’ consolidated net profit declined by 28.76% to ₹592.51 crore for the quarter ended on June 30 on account of COVID-19 related disruptions.

The company, which follows January-December financial year, had clocked a net profit of ₹831.75 crore a year ago, Ambuja Cements said in a BSE filing on Friday.

Its revenue from operations was down 34.34% at ₹4,644.17 crore during April-June quarter, from ₹7,074.08 crore in the corresponding quarter previous year.

Ambuja Cements’ total expenses declined 34.92% to ₹3,845.41 crore, compared to ₹5,909.22 crore.

The consolidated result of Ambuja Cements also includes the financial performance of its step-down firm ACC Ltd.

On a standalone basis, Ambuja Cement, part of Swiss firm LafargeHolcim, reported a 10.02% increase in its net profit to ₹453.37 crore as against ₹412.05 crore in the year-ago period.

The net profit included a ₹132 crore dividend received from ACC Ltd.

Its revenue from operations fell 27.04 % to ₹2,176.75 crore during the quarter, compared to ₹2,983.56 crore a year ago.

During the quarter, Ambuja Cements sales volume declined 28 % to 4.19 million tonnes as against 5.82 million tonnes.

“Ambuja has recorded yet another quarter of very strong results with operating EBITDA margin of 28%. In spite of complete lockdown in April, volume decline of 29 % was more than offset by lower costs, which fell by 31%,” Ambuja Cement MD and CEO Neeraj Akhoury said.

Ambuja Cements focus on cost reductions across value chain and cash management has helped it further strengthen our strong balance sheet, he said.

Shares of Ambuja Cement Ltd on Friday settled at ₹201.05 on the BSE, up 1.57% from the previous close.

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Printable version | Sep 27, 2020 9:44:47 PM | https://www.thehindu.com/business/Industry/ambuja-cements-posts-28-drop-in-net-profit-to-592-crore-in-april-june/article32192517.ece

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