Ambuja Cements Ltd, part of Swiss building material major Holcim group (earlier LafargeHolcim), on Thursday reported a decline of 55.48 per cent in its consolidated net profit to Rs 430.97 crore for the fourth quarter ended December 31, 2021. The company, which follows the January-December financial year, had clocked a net profit of Rs 968.24 crore a year-ago quarter, Ambuja Cements said in a BSE filing.
However, its revenue from operations during October-December 2021 jumped 2.31 per cent to Rs 7,625.28 crore, compared with Rs 7,452.87 crore in the year-ago period.
Ambuja Cements’ total expenses stood at Rs 6,865.61 crore in the December 2021 quarter, a 6.7 per cent jump as compared with Rs 6,434.43 crore a year ago.
The firm’s consolidated result also includes the financial performance of its step-down firm ACC Ltd.
On a standalone basis, Ambuja Cements reported a decline of 49.37 per cent in its net profit to Rs 251.66 crore as against Rs 497.10 crore in the year-ago period.
Its standalone revenue from operations stood at Rs 3,735.12 crore, a rise of 6.25 per cent in the October-December 2021 quarter as against Rs 3,515.11 crore a year ago.
Ambuja Cements’ sales volume was flat at seven million tonnes per annum (MTPA) in the quarter.
For the year 2021, Ambuja Cements’ consolidated net profit jumped 19.44 per cent to Rs 3,711.04 crore, against Rs 3,106.84 crore a year ago.
Its consolidated revenue from operations increased 18.14 per cent to Rs 28,965.46 crore in 2021. It was Rs 24,516.17 crore in 2020.
Neeraj Akhoury, CEO of Holcim India and MD & CEO of Ambuja Cements, said: “Ambuja delivered a strong full-year performance with an EBIT (earnings before interest and tax) growth of 25 per cent for the full year backed by strong performance in volume, product mix and operational efficiencies combined with significant acceleration in volumes under the master supply agreement with ACC.”
He said that during the year, the company delivered its highest-ever sales volume supported by stabilisation of operations at its new plant in Rajasthan.
“However, the December 2021 quarter was unfavourably impacted by steep escalation in fuel prices coupled with subdued demand in multiple regions,” he said.
Meanwhile, in a separate filing, Ambuja Cements said its board in a meeting held on Thursday has recommended a final dividend of Rs 6.30 per share, subject to the approval of the shareholders at the ensuing annual general meeting.
On the outlook, the company said economic activity continues to see improvement due to upbeat business confidence.
“The recently announced Union Budget focuses on growth led by substantial increase in the capex (capital expenditure) for the infrastructure sector.
“Cement demand growth is expected to remain positive backed by increased demand for housing combined with the government’s thrust on infrastructure development,” the company said.
Shares of Ambuja Cements Ltd on Thursday settled at Rs 359.40 on the BSE, down 0.43 per cent from the previous close.