India’s third biggest cement maker Ambuja Cements Ltd on Friday reported an increase of about 29% in its consolidated net profit in 2007 driven by higher sales, which were aided by higher cement prices and improved realisations.
The company’s consolidated net profit for the year ended December rose to Rs1,846.11 crore, from INR1,435.18 crore reported in the comparable year-ago period. Cement sales rose 3% for the period under consideration.
The company’s net sales, on a consolidated basis, rose more than 17% to INR5,792.08 crore, from INR4,931.98 crore in the year-ago period.
Earlier in January, Ambuja Cements had said that cement sales had risen to 16.9Mt in 2007, from 16.3Mt sold in 2006. Cement production for 2007 also rose 3% to 16.9Mt, from 16.3Mt in 2006.
For 2008, a company statement to BSE said, “Although, growth may moderate in the short term, macroeconomic fundamentals are sound and the outlook for the Indian economy remains bright. This reflects in the company’s current and planned capital investments.”
On a stand-alone basis, the company’s net profit rose 32% to Rs1,769.10 crore for the year ended 31 December, compared with Rs1,340.07 crore for the year ended December 2006.