Ambuja Cements Reports A Decline In Its Consolidated Profit By Over 56% In The First Quarter Of FY-2020-21

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2020-07-30 14:00:58

In the first quarter of FY-2020-21, Ambuja Cements recorded a decline in its consolidated profit by over 56%. The company in a BSE filing said that it's PAT i.e., profit after tax in the corresponding quarter of the previous fiscal was Rs.1,335.10 crores which, too, saw a decline in this fiscal and was Rs.592.51 crores.

In Q1, last year, Ambuja Cements net income was Rs.7,184.52 crores which, too, has experienced a dip in FY21 by 34% declining it to Rs.4,755.01 crores.

The company said that it's cost delivery for the quarter revolved around raw materials, power and fuel, logistics costs, and other fixed costs. It further added that the Network optimization had gained momentum because of the acceleration in the MSA (Master Supply Agreement) with ACC.

The company's net income in the first half of 2019 was Rs.14,277.79 crores whereas, in H1 2020, the net income was just Rs.11,146.48 crores. The PAT in H1 2019 was Rs.1,527.05 crores while PAT in H1 2020 registered was R.1,335.10 crores.

Neeraj Akhoury, Managing Director, and CEO of Ambuja Cements said that the company has recorder yet another quarter of strong results with an operating EBITDA margin of about 28%. In spite of the complete lockdown, Neeraj Akhoury said that the volume decline of the company of 29% was more than offset by lower costs which had fallen by 31%.

The company in a regulatory filing informed that its project at MarwarMundwa in Rajasthan is progressing.

-Bhakti Nikalje

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