Ambuja Cements Q1 net profit falls 14% to Rs 752 crore, sales up 15%

Cement maker Ambuja, which was recently acquired by the Adani group, along with ACC in a $10.5-billion deal, on Tuesday reported a 14.2 per cent drop in consolidated net profit to Rs 752 crore for the quarter ended June 30, 2022 versus the same period last year.

While the net profit reported by the company was ahead of Bloomberg consensus estimates, which was pegged at Rs 644 crore, sector analysts said the June quarter was impacted by a moderation in demand as well as elevated costs of power and pet coke.

Consolidated net sales rose 15.1 per cent to Rs 7,943 crore in the April-June period versus the same period last year, while earnings before interest tax depreciation and amortisation (Ebitda) fell 39 per cent to Rs 1,115 crore during the quarter. This was below Bloomberg’s consensus estimates, which had pegged Ebitda at Rs 1,524 crore.

Net sales, according to Bloomberg, was pegged at Rs 7,993 crore for the period. The company's Ebitda margin stood at 14 per cent during the quarter, a sharp fall from 26.5 per cent reported in the same period last year. Last week, ACC’s net profit fell 60 per cent year-on-year to Rs 227, while net sales grew 15 per cent over the year-ago period to Rs 4,468 crore.

Shares of Ambuja Cements closed trade at Rs 370.95 apiece on the BSE, marginally up at 0.07 per cent over the previous day’s close. Shares of ACC, on the other hand, fell 0.12 per cent on the BSE, to close trade at Rs 2,168.70 apiece.