Ambuja Cements June Quarter Profit Rises 77% To Rs 400 Crore

New Delhi: Ambuja Cements on Tuesday reported a 77 per cent increase in standalone net profit at Rs 399.51 crore for the quarter ended June 30, 2016.

The firm, which follows January-December as fiscal year, had clocked a net profit of Rs 226.35 crore for the corresponding period a year ago, it said in a filing to the BSE.

Total standalone income of the company, however, rose 2 per cent to Rs 2,560.72 crore in April-June quarter of 2016 as against Rs 2,508.27 crore a year ago.

Total expenses of the company were lower at Rs 2,110.90 crore in the quarter under review, as against Rs 2,272.99 crore a year ago.

Cement sales of Ambuja, however, declined 2 per cent to 5.76 million tonnes (MT) during the June quarter against 5.88 MT in the year-ago period.

Ambuja Cements said that its board has approved payment of interim dividend of Rs 1.60 per share. The dividend shall be paid on and from August 11, 2016.

It also said that energy costs were lower by 27 per cent due to low fuel prices and increased usage of pet coke in kiln. Various cost optimisation initiatives resulted in reduction in freight and forwarding costs. Packaging costs were also lower due to reduced prices of PP granule.

On outlook, the firm said post monsoon construction activities are likely to pick up.

"The medium to long term outlook for cement demand remains positive considering above normal monsoon forecast this year and government's focus on housing, concrete roads, smart cities and infrastructure development," it added.

The firm will continue to focus on improving operational efficiencies, it said.