Sharp decline in profit came on the back of higher expenses in raw materials prices especially high prices of power and fuel. Its expense on power and fuel jumped 42 per cent to Rs 2,068 crore from Rs 1,454 crore.
Shares of cement maker Ambuja Cements dropped over 5 per cent to hit an intraday low Rs 339.70 on the BSE a day after it reported its December quarter earnings after market hours on Thursday. Ambuja Cements' consolidated profit after tax dropped 55.48 per cent to Rs 431 crore in fourth quarter, the Gujarat-based company said which follows January to December financial year. Its profit in the year ago period came in at Rs 968 crore.
Its revenue from operations advanced 2.3 per cent to Rs 7,625 crore versus Rs 7,453 crore in the year ago period.
Sharp decline in profit came on the back of higher expenses in raw materials prices especially high prices of power and fuel. Its expense on power and fuel jumped 42 per cent to Rs 2,068 crore from Rs 1,454 crore.
Total expenses for the company advanced 6.55 per cent to Rs 6,865 crore.
The company declared dividend of Rs 6.3 per equity share.
"Ambuja delivered a strong full year performance with an EBIT growth of 25% 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. During the year we delivered our highest ever sales volume supported by stabilization of operations at our new plant in Rajasthan. However, the December 2021 quarter was unfavorably impacted by very steep escalation in fuel prices coupled with subdued demand in multiple regions," said Neeraj Akhoury, CEO, Holcim India and Managing Director & Chief Executive Officer, Ambuja Cements.
As of 11:47 am, Ambuja Cement shares traded per cent lower at Rs 342, underperforming the Sensex which was trading on a flat note.