Ambuja Cement net profit down 4.4 percent

Mumbai, April 28 (IANS) Cement maker Ambuja Cement, which follows the calendar year in financial accounting, on Thursday said it registered a decline of 4.4 percent in its consolidated net profit during the quarter ended March, at Rs.304 crore from Rs.318 crore in the same period last year.

Company’s net sales for the quarter fell marginally to Rs.2,418 crore, down 0.3 percent though sales volume rose to 5.86 million tonnes (mt) in the quarter as against 5.35 mt in the corresponding period last year.

“On the back of good cement demand, volume was up by 9.5 percent as compared to corresponding quarter of the previous year. The volume was higher by 7 percent as compared to the preceding quarter ended December 2015,” the company said in a statement.

It said in spite of lower production and distribution cost, operating EBITDA was down by 11.8 percent in the quarter.

“The company’s focus on efficient net working capital management has resulted in increased cash flow from operating activities by Rs.112 crore, for the current quarter as compared to corresponding quarter in previous year,” it said.

Cement demand posted a double digit growth during this quarter. The company has expected the medium to long term outlook for cement demand remains positive on the announcement of investments in infrastructure, housing, smart cities, concrete roads, etc.

The company’s board on Thursday decided not to pursue further with the scheme of amalgamation of Dirk India Pvt Ltd. with the company, it said in a regulatory filing.

–IANS

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