New Delhi: Indian cement manufacturer Ambuja Cements Ltd's fiscal second quarter (April-June) standalone net profit rose 34.7% to Rs 4.69 billion from Rs 3.48 billion in the year ago period, on account of higher product prices and sales volume.
Net sales of the company grew 18% to Rs 25.66 billion in the April-June quarter as against Rs 21.76 billion in the same quarter last fiscal 2011-12, Ambuja Cements said in a filing to the stock exchanges.
"Increase in realization was barely sufficient to make up for cost increase. The profit margin still improved due to higher sales volume and improved operational efficiencies," the company said in the statement.
The cement major follows calender year (Jan-Dec) as its financial year.
Cost of raw materials consumed by the company increased 19% to Rs 1.75 billion in the second quarter as compared to Rs 1.47 billion in the same period previous fiscal.
Ambuja Cement's finance costs rose 18.4% to Rs 180 million in the quarter ended June 30 as against Rs 152 million in the same period last fiscal.
During the quarter ended June 30, the earning before income, taxes, depreciation and amortization (EBITDA) margins increased 140 basis points to 28.2%.
Total expenses of the cement maker jumped 15.8% to Rs 19.7 billion in the second quarter from Rs 17 billion in the year-ago period.
Sales volume grew 7.3% year-on-year to 5.54 million tonnes (MT).
Shares of Ambuja Cements closed at Rs 179.6, up 3.22%, on the Bombay Stock Exchange today.
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