Holcim-owned ACC and Ambuja Cements have reported divergent financial numbers for the first quarter of 2014. While Ambuja registered a 7 per cent rise in net profit to ₹520 crore, ACC’s net was down 9 per cent at ₹400 crore.
In another development, Ajay Kapur, Deputy Managing Director, has been elevated as Managing Director. The incumbent Managing Director, Onne van der Weijde, is headed back to Holcim after a stint of nine years in India. The board also approved the appointment of Usha Sangwan, Managing Director, LIC, as additional director.
Ambuja’s sales were up 4 per cent at ₹2,640 crore. Sales volume increased 2 per cent to 6.06 million tonnes. The company registered a tax write-back of ₹96 crore in the March quarter compared with ₹117 crore in the same period last year.
The write-back in the same period last year was ₹141 crore.
Net sales were up marginally by 2 per cent at ₹2,967 crore (₹2,906 crore).
Sales volume increased a tad to 6.48 million tonnes (6.42 mt). The company attributed the flattish sales growth to slowdown in execution of infrastructure and real estate projects.
ACC is focusing on reducing costs and increasing sales volume of premium products. Its cost of production was up 5 per cent at ₹2,741 crore.
“While we do not foresee any significant improvement in the cement market in the near term, we will continue to cut costs and undertake customer excellence programmes to enhance sales realisations and improve margins,” it said.
While Ambuja Cements shares hit a new 52-week high of ₹220 on Wednesday, ACC closed with a gain of 1 per cent at ₹1,348 on the BSE.
The stock market was closed on Thursday due to polling in Mumbai for the general election.