Adani-owned Ambuja Cements’ Q4 profit rises as infra spending steps up
MUMBAI: India’s Ambuja Concretes on Tuesday revealed a surprisingly good final quarter benefit, supported by expanded government spending on foundation and lower natural substance costs.
Concrete creators have seen costs of key unrefined substances like coal and petcoke drop lately, experts say.
For the quarter that ended on March 31, Ambuja's profit after taxes increased to 5.02 billion rupees, or $61.3 million, from 4.94 billion rupees a year earlier. The Adani Group-owned business was anticipated to report a profit of 4.55 billion rupees, according to analysts.
After kiln fuel costs decreased by 10%, the margins on earnings before interest, taxes, depreciation, and amortization increased to 22.6% from 17.3% a year earlier.
“We see the continuation of the elevated demand and strong volumes in the coming quarters as well,” Chief Executive Ajay Kapur stated in a statement. “With the rise in construction activities across our markets,” he added.
The company stated, “We are encouraged by the government’s increased spending on infrastructure development.”
Income from tasks climbed 8.4% to 42.56 billion rupees, while the board suggested a last profit of 2.50 rupees per share for the monetary year that finished in Spring.
Despite ceasing operations for fifty days at its Himachal Pradesh state plants in northern India, the company has seen an increase in revenue.
Ambuja’s new owner, Adani Group, has denied allegations that US short-seller Hindenburg Research raised concerns about the company’s debt levels and use of tax havens at the end of January. Since then, Ambuja’s shares have dropped about 14%.
Holcim AG reportedly wanted to reduce its debt by selling a 4-5% stake in Ambuja Cements after purchasing the Indian cement companies Ambuja and ACC Ltd for $10.5 billion last year. Ambuja stated that the business does not have any debts.
Ultratech Cement, a larger rival, reported a 32% decline in profit for the March quarter last month.
