Ambuja Cements jumped 3.08% to Rs 177.60 after consolidated net profit rose 11.9% to Rs 554.25 crore on 8.5% decline in net sales to Rs 6,249.66 crore in Q1 March 2020 over Q1 March 2019.
The result was announced after market hours yesterday, 27 April 2020. Ambuja Cement follows a calendar year for accounting and subsequently announced their first quarter result.
Ambuja Cements reported a 11.92% fall in consolidated sales volume to 12.19 million tonne in Q1 March 2020 as against 13.84 million tonne reported in Q1 March 2019.
The cement manufacturer's consolidated EBITDA for Q1 March 2020 stood at Rs 1,191 crore, rising 19.5% from Rs 997 crore posted in Q1 March 2019. EBITDA margin improved to 19.4% in Q1 March 2020, gaining by 454 basis points.
The company in the near term expects the demand to stabilize due to normal monsoon and policy support measures taken by the Government and RBI. Post lockdown, it expects that rural demand and construction sectors like road and irrigation will gather pace. India's push for infrastructure, housing for all and urbanization will collectively drive demand growth in the mid-term.
Commenting on company's Q1 performance, Neeraj Akhoury, Managing Director & CEO said, till February the company had recorded a healthy volume growth, which was impacted in March 2020 due to the nationwide lockdown.
Ambuja Cements, a part of the global conglomerate LafargeHolcim, is among the leading cement companies in India. The firm operates through cement and cement related products segment.
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