Mumbai, July 25 (IANS) Ambuja Cements, a part of the LafargeHolcim Group, on Thursday reported a 15 per cent growth in standalone net profit for the April-June quarter of 2019-20.
Accordingly, the company’s net profit during the quarter under review rose to Rs 412 crore against Rs 358 crore in the corresponding period of the previous year. (This excludes dividend from ACC (subsidiary) of Rs 141 crore in the April-June 2018 quarter).
Net sales stood at Rs 2,912 crore compared with Rs 2,927 crore in Q1FY19. The company said the pace of construction activities slowed due to liquidity issues in the market and weak demand.
“Ambuja delivers a strong performance in the quarter backed by higher realisations and accelerated cost saving actions. Despite higher fuel costs, the company did well by optimising logistics costs, reducing raw material and fixed costs. Cement demand growth was muted in the quarter,” Ambuja Cements’ Managing Director and CEO Bimlendra Jha said in a statement.
“Focus on increasing premium product portfolio, targeting high contribution
markets, improved customer service combined with logistics efficiencies resulted in achieving a strong performance,” the company said.
On consolidated basis, the company reported a 19 per cent rise in net profit Q1FY20 to Rs 623 crore from Rs 525 crore in Q1FY19.
In terms of outlook, the company said re-election of a stable central government was expected to provide policy continuum and growth momentum.
“Recent actions, such as lower interest rates, reforms in IBC and slew of
measures announced for the financial sector to ease the liquidity, augur well for the economy,” the statement said.
“The government’s current budgetary allocation in infrastructure development, i.e. construction of concrete roads, inter-linking of rivers, irrigation projects and affordable housing, is expected to have a favourable impact on cement demand.”