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Informist, Monday, Oct. 28, 2024

 

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--Ambuja Cements Jul-Sept net profit INR 5.01 bln 
--Analysts saw Ambuja Cements Jul-Sept net profit INR 4.07 bln 
--Ambuja Cements Jul-Sept net profit INR 5.01 bln vs INR 6.44 bln 
--Ambuja Cements Jul-Sept revenue INR 42.13 bln vs INR 39.70 bln year ago 
--Ambuja Cements Apr-Sept net profit INR 10.68 bln vs INR 12.89 bln 
--Ambuja Cements Apr-Sept revenue INR 87.29 bln vs INR 87.00 bln 
--Ambuja Cements Jul-Sept clinker sales volume 14.2 mln tn, up 9% on year 
--Ambuja Cements Jul-Sept kiln fuel cost down 13% 
--Ambuja Cements Jul-Sept fuel cost dn; used more low-cost imported petcoke 
--Ambuja Cements expects FY25 cement demand to grow 4-5% 
--Ambuja Cements Jul-Sept consol net profit INR 4.56 bln vs INR 7.93 bln 
--Ambuja Cements Jul-Sept consol revenue INR 75.16 bln vs INR 74.24 bln 
--Ambuja Cements Jul-Sept consol operating EBITDA INR 11.11 bln, dn 15% YoY 
--Ambuja Cements Jul-Sept consol operating EBITDA/tn INR 780 vs INR 995 
--Ambuja Cements Jul-Sept consol operating EBITDA margin 14.8% vs 17.5% 
--Ambuja Cements Jul-Sept sales volume in north at 4.4 mln tn, up 7% on year 
--Ambuja Cements Jul-Sept sales volume in south at 1.5 mln tn, up 13% on yr 
--Ambuja Cements Jul-Sept sales volume in east at 3.3 mln tn, dn 4% on yr 

 

By Aman Aryan

 

MUMBAI – Ambuja Cements Ltd. Monday reported better-than-expected Jul-Sept earnings but its consolidated net profit fell 42.5% on year, the highest fall in the last eight quarters, due to an increase in the cost of materials consumed, depreciation and amortisation expenses, and a one-time exceptional expense in the September quarter. Despite posting a higher sales volume on year, the cement maker's earnings were impacted due to a contraction in its consolidated earnings before interest, tax, depreciation, and amortisation margin.

 

The company's consolidated net profit fell to INR 4.56 billion in the latest quarter from INR 7.93 billion in the year-ago quarter. Analysts expected the company to report a consolidated net profit of INR 4.07 billion. Sequentially, Ambuja Cements' consolidated net profit fell 28.7%.

 

While the company's sales volume rose 8.4% to 14.2 million tonnes in the September quarter, its consolidated revenue rose just 1.2% on year to INR 75.16 billion. Sequentially, the consolidated revenue fell 9.6%. The company said it has accounted INR 1.38 billion in other operating revenue as an accrued incentive income from its Sankrail unit under the West Bengal State Support Industries Scheme, 2013. During the latest quarter, the Supreme Court rejected the special leave petition submitted by West Bengal Industrial Development Corporation in a similar incentive claim dispute involving the company's Farakka plant, Amuja Cements said. 

 

The company's other income fell 21.4% on year to INR 3.7 billion in the latest quarter, the highest on-year fall in the last 13 quarters. The company incurred a one-time exceptional expense of INR 1.56 billion which included a provision of INR 1.21 billion made for pending litigation and disputed matters, and INR 350 million for vendor dispute settlement. The INR 350 million settlement expense is related to the cancellation of the coal block allocation, which was supposed to be jointly developed by the company and JMS Mining Pvt. Ltd.

 

Ambuja Cements' cost of materials rose 20.7% to INR 12.79 billion and its depreciation and amortisation cost rose 44.9% to INR 5.52 billion. This is due to the reclassification of cost of royalty on minerals to 'cost of materials' from 'other expenses', the company said. The company said this reclassification has been given effect from the June quarter. The company's other expenses fell 2.6% on year to INR 9.93 billion in the latest quarter.  More