Ambuja Cement's Net Profit after Tax Grows by 27% in Q2 Results

by Shrutee K/DNS

Ambuja Cements Limited announced its unaudited financial results for the quarter ended 30th June, 2018
Quarter
April-June 2018
Quarter
April-June
2017
Year to date
Jan-June
2018
Year to
date
Jan-June
2017
Sales Volume – Cement
Millions tonnes
6.37
6.05
12.59
12.07
Net Sales
Rs in Crore
2,927
2,817
5,690
5,347
Operating EBITDA
Rs in Crore
622
651
1,129
1,045
Net Profit after Tax
Rs in Crore
499
392
771
639

Better off-take in infrastructure projects, improved sand availability and increased Government spending resulted in steady demand growth trends in H1’18.  Demand is expected to grow more strongly in the rural belt on account of the impetus from the increased MSP of Kharif crops and prospects of a normal monsoon.

“Ambuja is well positioned to benefit from the upsurge in rural demand and the encouraging external environment. Our consistent customer-connect initiatives, pursuit of operational excellence and continued focus on the retail segment is helping us reduce the impact of rising cost pressures,” said Ajay Kapur, MD & CEO, Ambuja Cement.

Performance

Cement volumes increased in Q2 2018, compared to the corresponding quarter of the previous year, backed by healthy demand.  Net Sales stood at Rs 2,927 crore compared to Rs 2,817 crore. Sales of premium products has grown strongly and outperforms the normal growth trend.

Operating EBITDA for the quarter stood at Rs 622 Crore against Rs 651 Crore in the corresponding quarter of the previous year. Better top line, improvements in productivity and efficiency parameters helped largely mitigate the rising cost pressures particularly from power & fuel in this quarter.

Net profit after tax is Rs 499 crore (includes dividend from ACC Rs 141 crore) against Rs 392 in the corresponding quarter of the previous year.

Performance of Material Subsidiary – ACC Limited

Cement volume grew in a sustained manner at 7%. Net Sales during the quarter went up by 13% to Rs 3,768 Crore compared to Rs 3,329 Crore for the same quarter last year.

Consolidated (Ambuja Cement and ACC Limited) Financial Results for the Quarter ended 30th June 2018

H1 2018 Consolidated Net Sales up by 10%

H1 2018 Consolidated Operating EBITDA up by 7%

H1 2018 Consolidated PAT up by 8%

Quarter
April-June
2018
Quarter
April-June
2017
Year to date
Jan-June
2018
Year to
date
Jan-June
2017
Sales Volume – Cement
Million tonnes
13.61
12.78
26.94
25.40
Net Sales
Rs in Crore
6,683
6,145
12,997
11,782
Operating EBITDA
Rs in Crore
1,250
1,290
2,252
2,099
Net Profit after Tax
Rs in Crore
685
718
1,199
1,115
Net Profit after Tax and minority interest
Rs in Crore
525
555
915
847
The combined annual cement capacity of both the companies stands at 63 million tonnes.

Outlook
             
The company expects the economy to grow strongly in 2018 post successful GST transition and due to the various initiatives of the Government.  

Improved rural demand on account of government interventions such as the increase in the Minimum Support Price for Kharif crops, job creation and spending on rural and labour intensive infrastructure and expectations of a normal monsoon, combined with Government’s focus on infrastructure development (roads, ports, irrigation and metro projects), affordable housing and housing for all programme is expected to create buoyancy in the construction sector which will have a positive impact on cement demand.  However, the Company expects that increase in fuel prices and input material costs will continue in the near term. The Company is well placed to benefit from the above initiatives taken by the Government.

Comments

Popular posts from this blog

Dell Launches theLlatest XPS 13 with Infinity Edge HDR 4K Display

Gourmetdelight.in bags the 1st Runner – Up Trophy at the Retail Startup Awards 2018

Royal Enfield enters Interbrand’s 2017 Best Indian Brands at #17