Ambuja cement 2Q15 profit declines 45%

Ambuja Cements Ltd reported a 45 per cent drop in net profit for the quarter ended June on account of a lower operating profit and a INR220m (US$3.4m) depreciation charge.

The company posted a net profit of INR2.2635bn compared with INR4.087bn in the year-ago period. Net sales for the April-June quarter were reported at INR24.9276bn, eight per cent lower from INR27.0635bn reported a year back. EBITDA fell 34.7 per cent to INR03.84bn.

“The quarter witnessed muted cement demand. Sales volume increased 1.6 per cent, however due decrease in selling price by 10 per cent, overall net sales value was lower. Lower cost of input materials could not fully mitigate the impact of lower sales realisation,” the company said in a press statement.

The company sold 5.88Mt of cement in 2Q15, 1.6 per cent higher than a year ago.

The company also announced the appointment of Eric Olsen, chief executive officer, LafargeHolcim, as additional director, following the completion of the LafargeHolcim merger.