Saturday, October 27, 2012

Ambuja Cements' Q3 net up 77% on higher volumes


Ambuja Cements' September quarter (Q3) net profit rose 77% to Rs 304 crore,YoY. Sales also grew 20% or Rs 2168 crore boosted by higher volumes and also higher cement prices in areas of its existence:

Ambuja  has no presence in South India where demand has reportedly slackened. Higher exposure to the North and West regions  helped as utilisations were better in comparison with other regions.

Also, delayed monsoon further aided construction activity. Cement prices remained largely stable across regions during July-August but were down in September as monsoon picked up

The company said it expects demand to pick up further post the monsoon season.

The company said due to diesel price hike during the quarter, logistics costs went up but the cement major is keeping rigorous control to mitigate the effect of these inflationary pressures. Simultaneously other strategic initiatives are also being taken for continuous improvements in operations, sales and logistics.
ect for cement demand in the near term," said the company.

The steep increase announced in the price of diesel during the quarter led to a rise in the cost of road transport and other inputs. The company is keeping rigorous control to mitigate the effect of these inflationary pressures. Simultaneously other strategic initiatives are also being taken for continuous improvements in operations, sales and logistics.

Source: www.moneycontrol.com


Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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