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Strong volumes buoy Ambuja Cements; better cost controls boost performance

Analysts attribute the strong volumes to a better demand scenario in the eastern and northern markets and Gujarat

cement prices
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South India is seeing the biggest pricing impact

Ujjval Jauhari
The stellar performance of Ambuja Cements in the December quarter has surprised the Street. The impressive show came mainly on the back of higher-than-expected cement volumes and better cost control measures. Ambuja follows the January-December financial year. 

A growth of 17.4 per cent in cement volumes pulled up revenues, which grew 19.4 per cent year-on-year (y-o-y) to Rs 26.12 billion (up 14.5 per cent sequentially). Realisations, however, remained subdued as expected. These were up 3 per cent y-o-y at Rs 4,427 a tonne, but were 2.2 per cent lower sequentially. 

Analysts attribute the strong volumes to a better demand scenario in the

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