Cement producer Ambuja Cement Ltd said its quarterly net profit rose 17% helped by better cement prices and higher volumes, but warned cost pressures may continue to hurt margins.
The company reported a net profit of Rs 302 crore for the three months to December 31, compared with Rs 258 crore a year earlier.
Ambuja Cement, in which Switzerland's Holcim, the world's second-largest cement producer, holds a 46% stake, reported a 30.3% rise in net sales at Rs 2,329 crore.
"The realisation (selling price per bag) rose by 24% and volumes by 5% compared with last year, which led to revenue growth. There was an increase of Rs 854 per tonne in cement prices," Sanjeev Kumar Singh, sector analyst at Centrum Broking said.
Post monsoon, cement makers hiked prices by an average Rs 10-15 across the country for 50 kg bags. The demand during the quarter rose 10% on an annual basis across the country, Centrum's Singh said.
Ambuja said that cost pressures due to rising energy charges, logistics and raw materials may continue to impact margins.
"Prices are expected to remain volatile in the short-term due to demand supply imbalances," the company said in a statement.
Ambuja, which follows a January-December accounting year, saw net profit drop 2.8% at Rs 1,229 crore for 2011. Net sales for the year rose 15.2% to Rs 8,515 crore.
Shares in the company closed up 0.68% at Rs 178.20 rupees in a strong Mumbai market.