Ambuja Cement profits up 80% as Indian profits climb 40% overall

Ambuja Cement has released its Q3 earnings, which show that net profits for the company were up by 80 per cent YoY at INR2.77bn (US$41.5m).

Revenues were down slightly, falling by 4.3 per cent to INR20bn, but dividend income from its shareholding in ACC and falling costs, particularly in terms of power and fuel (down 10 per cent) helped to improve the company’s bottom line.

Ambuja reported that diesel costs rose over the period, but this was compensated for by an improved fuel mix.

Sales volumes for Q3 were down by 6.6 per cent YoY at 4.5Mt, with the company attributing this to the effects of a heavier-than-usual monsoon in its core markets, which depressed demand.

Going forward, Ambuja said that it expects construction activity to pick up post-monsoon and believes that demand outlook is positive given the government’s focus on housing and infrastructure development.

The firm also released a consolidated earning statement, covering the performance of both it and fellow LafargeHolcim subsidiary ACC. This a less marked but still substantial rise in profits of 40 per cent, to INR2.6bn on revenues of INR45bn.