Ambuja cement has released its standalone financial results for 3Q15.
During the quarter, the cement market was subdued. Although sales volume increased by 3.2%, overall net sales were 4.3% lower. Lower operating costs, with improved operational efficiencies, have partly mitigated the impact of reduced sales realisation. A provision of Rs.40 crore has been contributed to the District Mineral Foundation and National Mineral Exploration Trust, as per The Mines and Mineral Amendment Act 2015. This includes Rs.27 crore up to previous quarters. From this, the EBITDA margin for the quarter has been impacted by 130 points.
Net profit after tax is down by 35.6%, at Rs.154 crore during 3Q15, compared to Rs.239 crore in 3Q14. This is due to lower operating EBITDA as well as an additional depreciation charge of Rs.28 crore on the implementation of Schedule II of the Companies Act, 2013.
During the quarter, Ambuja Cement commissioned a Waste Heat Recovery System of 6.5MW at its Rabriyawas unit in Rajasthan.
Post-monsoon construction activities are likely to pick up with the long-term outlook for cement demand remaining positive. This is due to the government’s focus on housing, concrete roads, smart cities and infrastructure development. Ambuja Cement will continue to focus on improving operational efficiencies.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/asia-pacific-rim/29102015/ambuja-cement-3q15-results-871/