Ambuja Cements announced its unaudited financial results for the quarter ended 30th June, 2016. Overall sales value increase by 1.9% on account of improved sales price by 3.8 percent, partly offset by reduction in volumes, as compared to corresponding quarter of the previous year.
Energy cost was significantly lower by 27 percent due to low fuel prices and increased usage of pet coke in kiln at 60 percent as against 45 percent in corresponding quarter of the previous year. Various cost optimization initiatives undertaken by the company has resulted in reduction in freight and forwarding cost this quarter. Packing cost was also lower on account of reduced PP granule prices.
Improved sales prices and reduction in cost has resulted in increased operating EBITDA and net profit by 56.5 percent and 77 percent respectively.
The Board of Directors has recommended an interim dividend of Rs. 1.60 per share.
Outlook
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. The company would continue to focus on improving operational efficiencies.
