Ambuja Cements has reported a consolidated net profit of Rs 1,262.97 crore for 2010, a 4 per cent rise, owing to higher production and sales. The company posted a net profit of Rs 1,216.84 crore in 2009. Net sales rose by 4.4 per cent to Rs 7,390.21, compared with Rs 7,076.87 crore in the previous year.
Ambuja Cements also announced a final dividend of equity shares at Rs 1.4 per share. With the interim dividend of Rs 1.2 per share paid during the year, the total dividend for the year 2010 works out to Rs 2.60 per share.
Production rose 6.9 per cent to 20.1 million tonnes in 2010, compared with 18.8 million tonnes in 2009. Domestic cement sales rose 8 per cent to 19.5 million tonnes from 18 million tonnes in the previous year. However, the company’s exports declined to 500,000 tonnes from 750,000 tonnes.
Ambuja Cements said that in the last year, the company’s annual capacity rose to 25 million tonnes. “This will increase further in 2011 to approximately 27 million tonnes, following the completion of additional grinding capacity at the Bhatapara (Chhattisgarh) and Maratha (Maharashtra) plants,” the statement said.
The company also said that going forward, margins may remain under pressure in the short term, because of an imbalance in demand and supply. “The cement demand-supply imbalance is set to continue for some time and we could therefore see periodic market and price instability. Equally, the upward trend in input costs currently show no sign of abatement. Consequently, in the short-term, margins may remain under pressure,” the statement added.