Cement major – Ambuja Cement on Friday posted a net profit of Rs 453.37 crore for the quarter ending June which is 10.03% higher than what was recorded in the same quarter previous year. Even their profits have increased, their revenue from operations has actually decreased by 27% from Rs 2,983.56 crore to Rs 2,176.75 crore.
This jump in net profit has beaten many of the street estimates. It was expected that the Ambuja Cement will report a profit but a 10% YoY jump was unexpected.
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According to Neeraj Akhoury, the Managing Director & CEO, “Ambuja has recorded yet another quarter of very strong results with an operating EBITDA margin of 28 per cent. In spite of complete lockdown in April, volume decline of 29 per cent was more than offset by lower costs, which fell by 31 per cent.”
When compared to another cement giant, ACC reported a drop of 40.6% in net profits in the quarter ending June. Not only the net profits, but their revenue also decreased by 37.31%. Their consolidated net profit for this quarter was Rs 270.95 crore which is way less than what Ambuja Cement was able to amass this quarter.
The company stated that it started its operations only after the national lockdown was lifted by the government. A fall in the prices of raw materials has helped them to avail products at low cost. The company expects demand to increase in the coming months as state governments are pushing to run the economic activities.