Ambuja Cements reports 51% increase in net profit

Ambuja Cements reports 51% increase in net profit
23 October 2020

India’s Ambuja Cements reported a 50.5 per cent YoY rise in consolidated net profit to INR8.04bn (US$109.15m) for the July-September quarter this year, compared to INR5.34bn during the year-ago period. Standalone profits also surged 88 per cent YoY to INR4.41bn, mainly on account of the company’s cost reduction programmes and volume growth.

"Robust improvements in operational efficiency and cost reduction programmes coupled with volume growth, have led to an earnings increase for the quarter," said the company’s managing director, Neeraj Akhoury.

Net sales advanced 9.6 per cent YoY to INR28.02bn against INR25.56bn in the 3Q19, while operating EBITDA climbed 55 per cent YoY to INR6.81bn. Cement sales volumes also reached 5.67Mt from 5.23Mt in the corresponding period of last year.

"We expect rural and agriculture sectors to lead the revival in economic activities. This, along with continued focus on infrastructure development and affordable housing will support cement demand in the mid-term," stated the company.

Ambuja Cements also announced a date for commissioning its new plant in Rajasthan. "We are executing our growth strategy through a new plant at Marwar Mundwa in Rajasthan, which is scheduled to be commissioned in the 2Q21."

Published under Cement News