India’s Ambuja Cements Limited experienced a 9% y/y fall in cement sales volumes in the quarter ending 31 March 2015. Muted demand for the building material impacted the company’s net sales, which declined by 8.1% y/y.
Although improved operational efficiencies helped to somewhat offset cost increases, this, together with lower sales volumes, contributed to a 13.4% y/y decline in operating EBITDA.
Net profit before tax dropped by 26.9% from Rs.583 crores in January – March 2014 to Rs.426 crores in January – March 2015. Net profit after tax totalled Rs.318 crores, down 38.8% y/y. This has been attributed to lower net profit before tax and a write back of tax provisions in the corresponding quarter in 2014.
Ambuja Cements secured a coal block at Gare-Palma Sector-IV/8 in Chhattisgarh, after participating in an e-auction for coal blocks conducted by the Ministry of Coal, Government of India. The cement producer has put the capex for the development of this project at an estimated Rs.370 crores, with mining forecast to begin in 2018.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/asia-pacific-rim/05052015/ambuja-cements-results-january-march-2015-quarter-779/