Cost pressures take Ambuja Cement Q2 net down.

Cost pressures take Ambuja Cement Q2 net down.
28 July 2008

Ambuja Cements Ltd (ACL) on Friday announced that the company posted a fall of 33% in its net profit to for the second quarter ended June 30, 2008 at Rs 577 crore against Rs 855.01 crore in the corresponding quarter last year.

The company’s sales for the period stood at Rs 1,570 crore, up 8% from Rs 1,450 crore last year on account of a combination of moderate price increase and a change in mix of export and domestic dispatches, the firm informed. However, the total dispatches were more or less flat.

The company’s Ebitda dipped 18% to Rs 485 crore in the quarter as compared to the previous year. The margins were impacted because of continuous cost pressures, which include rise in fuel and power costs along with an increase in the cost of imported coal. Domestic dispatches for the quarter were up by 5%.

However, exports declined by 70% to 76,000t. "Cement prices increases during the quarter have been moderate, at 5% YoY and 1% sequentially," the company said.
Published under Cement News