Lower realisation, higher cost drags Ambuja Cements's Q3 performance

Muted volume growth expectations keep analysts cautious on CY19 profit growth

Ambuja Cements saw the dual impact of higher costs and lower realisations pull down its December 2018 quarter profitability. While many of its peers, too, had seen similar pressures, Ambuja numbers were impacted further by relatively softer volume growth. Cement sales grew 4.4 per cent year-on-year to 6.1 million tonnes (MT). ACC had reported 8 per cent year-on-year growth, while UltraTech and Shree Cement’s volumes grew  14 per cent and 12.9 per cent, respectively. Ambuja Cements, which has lagged capacity additions compared to its peers, continues to feel the impact of the same, say analysts.
 
With cement prices subdued,