Ambuja Cements reports robust profit growth on the back of non-operating incomes, even as high energy costs pinch
Mumbai: Higher sales, dividends from subsidiary and a one-time reversal of tax provisions helped Ambuja Cements report a 45% growth in profit for the April-June quarter despite the pinch from higher energy and logistics costs.
The company reported a standalone revenue of Rs 3,993 crore, up 18% year-on-year. However, expenses grew twice as fast owing to high fuel costs.
Subsequently, earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 29% year-on-year to Rs 685 crore.
The company reported other income of Rs 632 crore including dividends from ACC and reversal of a tax provision. This helped it improve its standalone bottom line by 45% to Rs 1,048 crore.
“The April to June 2022 quarter was impacted by rising fuel prices and related inflationary impacts,” Neeraj Akhoury, the chief executive of Holcim India and
said in a statement. “This was partly mitigated by improved efficiencies delivered under our ‘I CAN’ program which continues to deliver strong results.”
A master supply agreement with ACC also helped save on logistics costs, he said.
The company’s expansion projects of 8.5 million tonnes of cement capacity at Ropar and Bhatapara were on track. Meanwhile, its ongoing Waste Heat recovery projects of 53 MW will be commissioned in the ongoing quarter, which will help the company improve its energy efficiency.
The stock of
closed marginally higher at Rs 371 on the BSE on Tuesday. Benchmark Sensex gained 0.45%.
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