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Businesswire

Net Sales Increased by 10 Percent, PAT Like for Like Increased by 6 Percent

by businesswireindia.com

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Business Wire India
    Quarter
July-September 2018
Quarter
July-September 2017
Year to date
January-September
2018
Year to Date
January-
September
2017 
Sales Volume – Cement Millions tonnes 5.46 5.02 18.05 17.09
Net Sales Rs. in Crore 2,522 2,284 8,212 7,638
Operating EBITDA Rs. in Crore 358 354 1,488 1,400
Net Profit after Tax Rs. in Crore 179 272 950 911
 
“Our continued focus on growing the topline with our well-defined marketing and commercial strategies focusing on the retail consumer, value-added portfolio of products and services and selling more in our core markets helped deliver a good net sales growth of 10.4%. Sharp cost management helped mitigate the impact of headwinds coming from oil/fuel and rupee volatility and enabled us to deliver good results” said Ajay Kapur, MD & CEO, Ambuja Cement.
 
Performance
 
Cement volumes grew ~9% in Q3 2018 backed by a favourable demand trend.  Net Sales increased to Rs. 2,522 crore from Rs. 2,284 crore in the same quarter of the previous year.
 
Operating EBITDA for the quarter was Rs. 358 crore against Rs. 354 crore in the corresponding quarter of the previous year. While the company reported good topline growth, there were pressures on account of rising costs especially for power & fuel, diesel, packing bags (impacted by increase in crude prices) coupled with volatility in the exchange rates. The company has focused on internal cost saving initiatives to contain the cost pressures.

PAT like for like is up by 6%.  In the previous year Net Profit after Tax included ACC dividend of Rs. 103 crore. Adjusted for the same PAT stands at Rs. 179 crore against Rs. 169 crore in the corresponding quarter of the previous year.

Performance of Material Subsidiary – ACC Limited
 
Cement sales volumes grew by 10% during the quarter spurred by higher demand. Net sales during the quarter rose by 10% to Rs. 3,364 crore compared to Rs. 3,054 crore in the corresponding quarter of the previous year. The company's Ready Mix concrete sales volumes grew 12% driven by an increase in the sale of value-added products and the addition of 8 new plants across the country.
 
Consolidated (Ambuja Cement and ACC Limited) Financial Results for the Quarter ended 30th September, 2018
 
       Net Sales increased by 10%
 
PAT increased by 13%
    Quarter
July-September 2018
Quarter
July- September 2017
Year to date
January-September
2018
Year to
Date
January-September 2017 
Sales Volume – Cement Million tonnes 12.01 10.98 38.95 36.38
Net Sales Rs. in Crore 5,877 5,328 18,874 17,105
Operating EBITDA Rs. in Crore 803 773 3,055 2,872
Net Profit after Tax Rs. in Crore 396 351 1,595 1,466
Net Profit after Tax and minority interest Rs. in Crore 288 260 1,203 1,107
The combined annual cement capacity of both the companies stands at 63 million tonnes.
 
Outlook
        
GDP growth in the last quarter was encouraging backed by good monsoon. Continued focus on GDP growth and infrastructure projects by the Government and a strong push on Housing for All and affordable housing led to good demand growth in the cement sector. Going forward we expect this to continue and accelerate further.
 
The Company is well placed to benefit from the above initiatives taken by the Government.
Source: Businesswire