The cement major's consolidated net profit jumped 50.5% to Rs 803.50 crore on 1.5% increase in net sales to Rs 6,169.47 crore in Q3 September 2020 over Q3 September 2019.
Consolidated profit before tax (PBT) soared 41.7% to Rs 1,124.97 crore in Q3 September 2020 as against Rs 793.69 crore in Q3 September 2019. Current tax expense for the quarter rose 23.4% to Rs 319.94 crore as against Rs 259.35 crore in Q3 September 2019.
Consolidated operating EBITDA jumped 35.03% to Rs 1,349 crore in Q3 September 2020 compared with Rs 999 crore in Q3 September 2019. Consolidated EBIT soared 48.46% to Rs 1,060 crore in Q3FY21 compared with Rs 714 crore in Q3FY20. The Q3 result was declared post trading hours yesterday, 22 October 2020.
On a standalone basis, net profit rose 87.66% to Rs 441 crore on 9.62% increase in net sales to Rs 2802 crore in Q2 September 2020 over Q2 September 2019. Operating EBITDA rose 54.77% to Rs 681 crore during the period under review.
The company registered a strong volume growth of 8%, supported by positive price. Total operating cost per ton has declined by 8% on a year on year basis, on account of lower input costs and efficiency programs. In addition, network optimization has gained momentum due to acceleration of Master Supply Agreement (MSA) with ACC. Outbound logistics cost is lower due to favorable market mix and efficiencies.
Commenting on the Q3 performance, Neeraj Akhoury, the managing director (MD) and chief executive officer (CEO) of Ambuja Cements, has said that: "The foundations of our business remain strong to drive growth , expand operating margins and enhance cash conversion. Robust improvements in operational efficiencies, cost reduction programs coupled with volume growth, have led to operating EBITDA increase by 55% for the quarter and a margin expansion of 710 bps. Our focus on working capital management has resulted in a strong positive cash conversion. We are executing our growth strategy, through a new plant at Marwar Mundwa in Rajasthan, which is scheduled to be commissioned in Quarter 2, 2021."
In its outlook, the cement major said: with the Government of India as well as the Reserve Bank of India assigning highest priority to acceleration of economic growth, we are confident of resurgence in demand across sectors. We expect rural and agriculture sectors to lead the revival in economic activities. This, along with continued focus on infrastructure development in terms of roads, highways, ports, railways and affordable housing will support cement demand in the mid-term.
The board approved an interim dividend of Rs 17 per equity share of Rs 2 each. The record date is fixed on 5 November 2020.
Shares of Ambuja Cements fell 1.54% to Rs 249.95.
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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