Ambuja Cements net profit up 65% to Rs 1,228 Cr
Ambuja Cements Ltd, part of Swiss firm LafargeHolcim, on April 29th reported a 65.4 per cent jump in consolidated net profit to Rs 1,228.24 crore for the first quarter ended March 2021, helped by volume growth. The company, which follows the January-December financial year, had clocked a net profit of Rs 742.59 crore in the January-March period a year ago, Ambuja Cements said in a BSE filing. Its revenue from operations was up 23.44 per cent to Rs 7,714.81 crore as compared to Rs 6,249.66 crore in the corresponding quarter of the previous financial year. Total expenses were at Rs 6,176.76 crore, up 14.63 per cent from Rs 5,388.38 crore earlier. The consolidated results of Ambuja Cements also includes the financial performance of its step-down firm ACC Ltd. On a standalone basis, Ambuja Cements reported an increase of 66.52 per cent in net profit to Rs 664.57 crore as against Rs 399.10 crore in the corresponding quarter of last year. Revenue from operations rose 28.08 per cent to Rs 3,621.39 crore from Rs 2,827.54 crore. Sales volume also increased 24.48 per cent to 7.17 million tonnes as against 5.76 million tonnes earlier. "Net Sales during the quarter stood at Rs 3,579 crore compared to Rs 2,760 crore in the corresponding quarter of the previous year, resulting in a growth of 30 per cent. Special products volume grew at 82 per cent compared to the same period last year," the company said in a post-earning statement. Moreover, total operating cost per tonne declined by more than 5 per cent led by operational efficiency programs in the plants along with logistics efficiencies such as direct dispatches, reduction in lead and increased home market sales. "These initiatives have compensated for the impact of rising fuel and raw material costs, which continues to be a matter of attention for the coming quarters," it said. Ambuja Cements Managing Director and CEO Neeraj Akhoury said, "Despite strong and continuing headwinds on input prices including coal, petcoke and diesel, we have made significant progress on efficiency improvement that has had a positive impact on cost evolution." Regarding the COVID-19 situation, the company said it is ensuring strict adherence to government guidelines and all plants are continuing to operate under strict COVID protocols.