Mumbai (Maharashtra) [India], Oct 18 (ANI): Ambuja Cements Ltd, a part of the global conglomerate LafargeHolcim, on Friday reported 31 per cent jump its net profit at Rs 235 crore during the July to September quarter compared to Rs 179 crore the year-ago period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) totalled Rs 440 crore in Q2 FY20, up 23 per cent from Rs 358 crore in Q2 FY19.
While net sales went up to Rs 2,556 crore from Rs 2,522 crore, the net sales volumes declined to 5.23 million tonnes from 5.46 million tonnes in the same period.
"In the backdrop of a general slowdown in economy and subdued construction activity, Ambuja has delivered yet another quarter of good EBITDA and PAT growth despite lower volumes," said Managing Director and CEO Bimlendra Jha.
"This has been possible with a clear focus on product mix enrichment and reduction in logistics costs. Premium products registered a growth of 17 per cent year-on-year and the company maintained its progress on fossil fuel substitution with alternative fuels and renewable energy," he said in a statement.
The company recently has moved one spot up to fourth rank globally in the construction material category adjudged by Dow Jones Sustainability Index (DJSI) 2019.
Jha said recent reforms announced by the government like sharp cut in corporate tax, aggressive disinvestment plan coupled with the Reserve Bank of India's latest interest rate cuts ought to augur well for the economy.
"These measures should support growth and hence boost segment for cement. Healthy monsoon bodes well for rural housing demand which is a key segment for cement. Higher spends in infrastructure and affordable housing are also expected to favour demand," he said.
Ambuja has a cement capacity of 29.65 million tonnes with five integrated cement manufacturing plants and eight cement grinding units across the country.