Ambuja Cement saw its net profit for the December quarter increasing 17 per cent from Rs 258 crore in December 2010 to Rs 302 crore in December 2011. Revenue for the quarter was up 29 per cent, from Rs 1,827 crore to Rs 2,358 crore for the same period.
However, increasing cost pressures saw the cement major booking a net profit lower than last year's for the calendar year ended 2011.
Net profit was down 2.8 per cent at Rs 1,229 crore (Rs 1,264 crore in 2010) even though profit at the operating level (EBITDA) was marginally up at 2.2 per cent over last year — Rs 1,994 crore in 2011 versus Rs 1,951 crore in 2010 — despite an increase in net sales by 15 per cent to Rs 8,515 crore. The increase was on the back of a 4.5 per cent increase in cement sales volume at 20.91 million tonnes.
Cost pressure
Though the company expects demand for cement to increase in 2012, cost pressures would also increase on account of energy logistics and raw materials, said a company statement.
The board has recommended a final dividend of Rs 1.8 per share taking the total dividend to Rs 3.2 per share.
Ambuja Cements increased its total grinding capacity to 27.35 million tonnes with one new plant each at Chhattisgarh and Maharashtra.
It added two wind turbine generators having a capacity of 7.5 MW and added two ships to its existing fleet of eight for cost effective transportation.
Ambuja Cement acquired 85 per cent stake in Nepal's Dang Cement for Rs19.13 crore.
The company also acquired a 50 per cent stake in Goa based Counto Microfine Products for Rs 10 crore and picked up 60 per cent in Dirk India Maharashtra, a fly ash processor for Rs 16.5 crore.