Ambuja Cements December Quarter Net Up 4% at Rs 329 Cr

New Delhi: Ambuja Cements on Wednesday reported a 3.8 per cent rise in net profit at Rs 328.59 crore for October-December quarter, on higher income.

The cement maker, in which Swiss building material major Holcim has a majority stake, had clocked a net profit of Rs 316.50 crore for the corresponding period last fiscal year, it said in a statement.

Total income of the company rose to Rs 1,404.85 crore during the quarter compared to Rs 2,213.25 crore a year ago.

For the full year 2014, Ambuja Cement reported a 15.5 per cent jump in net profit at Rs 1,496 crore on higher income buoyed by higher sales realisation compared to Rs 1,295 crore a year earlier.

"Net sales (in 2014) increased by 9.2 per cent primarily on account of improved sales realisation and volume growth. The net profit after tax was also higher atRs 1,496 crore during the year as against Rs 1,295 crore in the previous year," Ambuja Cement said.

"Company's cost optimisation initiatives partly mitigated inflationary pressures and restricted overall cost increases. This helped the company earn higher EBITDA at Rs 1,928 crore as compared with Rs 1,667 crore in the previous year," it added.

The company's board has recommended a final dividend of Rs 3.2 per share.

"Cement demand is expected to be better with expectation of higher GDP growth and improved business sentiments. The drivers for demand will continue to be housing and infrastructure considering government's push in this sector," it said.

"The company will continue to work on improving efficiencies and focus on customer and commercial excellence. The company believes that these initiatives will help translate into improved performance," it added.