Monsoon likely to affect cement demand: Ambuja Cement

Ambuja Cement reported a 34.9 per cent growth in net profit at Rs. 469 crore for the quarter ended June 30 on increased sales, however the company anticipates lower in cement demand during monsoon. Releasing the financial results for Q1, the company said, “Cement demand is expected to be low during the monsoon.”The company had posted net profit of Rs. 348 crore in the corresponding period last year. Cement production has increased by 7.3 per cent to 5.58 million tonnes and sales volume rose by 7.3 per cent to 5.54 million tonnes, compared to the previous year.
“Net sales of the company rose 17.9 per cent to Rs. 2,566 crore during the April-June quarter whereas absolute EBITDA of the company rose by 22.8 per cent to Rs. 735 crore”, Ambuja Cement said in a statement. “Increase in realisation was barely sufficient to make up for cost increase. The profit margin still improved due to higher sales volumes and improved operational efficiencies.”
Onne van der Weijde, Managing Director of the company informed, “With steep increase in cost driven by increase in raw material cost, coal cost, distribution cost and freight on internal movement of clinker, profit margins are expected to be under pressure. Ambuja Cement would continue its thrust in improving productivity and operational efficiency to partly mitigate these pressures.”

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