Ambuja Cements Ltd., one of the lowest-cost producers of cement, reported a higher stand-alone net profit for the first-quarter, due to write back of income tax provision during the quarter and additional depreciation charge in the preceding year quarter.
Stand-alone Results
The Junagadh-based company posted a first-quarter stand-alone net profit of Rs.487.90 crore or Rs.3.15 per share, compared with Rs.312.22 crore or Rs.2.03 per share in the first-quarter of 20012. Net profit and earnings per share grew by 56 and 55 percent respectively.
Results for the preceding year quarter included a one-time charge of Rs.279.13 crore, under exceptional item, towards additional depreciation charge on account of change in method of providing depreciation on fixed assets pertaining to its Captive Power Plants from the 'Straight Line' to the 'Written Down Value' and write back of income tax provision of Rs.117.17 crore in the current quarter.
Its quarterly stand-alone net income was Rs.2,544.83 crore, down by three percent from the Rs.2,631.49 crore in the previous year, while 'other operating income' was Rs.12.19 crore, compared with the Rs.19.22 crore in the first quarter of last year.
During the quarter, the production of cement was lower by four percent at 5.84 million tonnes, while the sales volume decreased by four percent to 5.80 million tonnes from the 6.05 million in the prior-year quarter.
Outlook
Presently, the cement industry is facing subdued demand on account of continuing economic slowdown. In an environment of over capacity, realizations are under pressure. However, with continuously improving operational efficiency and productivity, the company is poised to sustain these pressures.
At the BSE, Ambuja Cements shares are currently trading at Rs.188.50, down 0.79 percent from the previous close.
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