Indian cement company Ambuja Cements has released its 2Q15 results, reporting a 44.7% decrease in net profits after tax at Rs.226 crores, down from Rs.409 crores in 2Q14.
Whilst sales volumes increased by 1.6%, sales prices were weak, declining by approximately 10% and leading to a fall in the company’s net sales of 7.9% y/y.
In spite of increased operational efficiencies and the lower cost of input materials, EBITDA fell 34.7% y/y.
Outlook
The company, now part of LafargeHolcim, expects continued sluggish demand in the short term. However, government initiatives to improve infrastructure should result in an improved long-term outlook. The company plans to continue to focus on operational efficiency.
Adapted from press release by Katherine Guenioui