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Shares of Ambuja Cements today fell 2.61 per cent in morning trade on the bourses after the cement maker reported a 45 per cent decline in the July-September quarter net profit.
Ambuja Cements yesterday reported a 45.4 per cent drop in net profit for the July-September quarter at Rs 166 crore due to lower realisations and higher logistics costs.
The company had clocked Rs 304 crore net profit in the corresponding period last fiscal.
Reacting to the numbers, shares of Ambuja Cements opened on a weak note and then slumped 2.61 per cent to Rs 191.50 on the BSE. Similar movement was witnessed on the National Stock Exchange as well where the company opened at Rs 193.10, then fell 2.33 per cent to an intra-day low of Rs 192.10.
The decline in the counter assumes significance as the broader market was trading in the positive territory with significant gains. At 10.59 a.m., the 30-share benchmark index Sensex was trading at 20,968.16, higher by 200.28 points.
Market experts said the decline in the counter was largely because the company’s September quarter earnings were below market expectations.
“The cement industry is going through subdued demand on account of overall economic slowdown. Lower realisation and higher logistics cost impacted profitability,” the company said yesterday.
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