Ambuja Cement net drops by 33%
Ambuja Cement Ltd, a Holcim group company, saw 33 pc drop in net profit at Rs 577 crore for the second quarter ended June 30 as compared to Rs 855 crore in the same period last year.business Updated: Jul 25, 2008 21:16 IST
Ambuja Cement Ltd, a Holcim group company saw 33 per cent drop in net profit at Rs 577 crore for the second quarter ended June 30, 2008 as compared to Rs 855 crore in the same period last year. The company’s total income rose by 8 per cent to Rs 1,570 crore compared to Rs 1,464 crore in the corresponding quarter of the previous year.
The company has announced an interim dividend of Rs 1.20 per share.
“Cost pressure continue to be unrelenting,” the company said on the declining profitability. It said fuel and power costs were higher by 34 per cent, particularly imported coal prices which tracked the upwardly moving global oil prices.
“Cement price increase during the quarter have been moderate at 5 per cent on year and 1 per cent subsequently. Consequently EBITDA is 18 per cent lower than same quarter last year,” the company said.
During the period the company realised an exceptional gain of Rs 303 crore of tax on the sale of its remaining stake in Ambuja Cement India Private Ltd to Holderind Investments.
On the future outlook the company said that its profit margins would remain under pressure due to short term problems of rising input costs and pricing constraints.
“Nevertheless we will continue to strive for maximum operating efficiency, and take all measures to limit the impact on profitability,” Ambuja Cement said.