Ambuja Cements reported a 90 percent year-on-year decline in consolidated net profit to Rs 236 crore for the September quarter, as higher fuel and logistics costs weighed on profitability despite an improvement in its trade and premium product mix. The profit decline also needs to be seen against a high base. The year-ago quarter’s profit after tax included a reversal of income tax provisions worth Rs 1,697 crore, the company said.
The cement maker, part of the Adani Group, reported revenue from operations of Rs 9,197 crore for the second quarter of FY27, marginally higher than Rs 9,175 crore a year earlier. Operating EBITDA fell 28 percent to Rs 1,271 crore from Rs 1,762 crore, while EBITDA margin contracted to 13.8 percent from 19.2 percent.
EBITDA per tonne declined to Rs 770 from Rs 1,061 in the year-ago quarter. Cement sales volume stood at 16.5 million tonnes, compared with 16.6 million tonnes a year earlier.
“Elevated fuel and logistics costs, driven by higher petcoke and coal prices, constrained coal availability, and increased diesel and packaging costs, continue to weigh on industry margins,” Ambuja Cements said in its media release.
The company reported total costs of Rs 4,410 per tonne in the quarter. Excluding the impact of geopolitical conflicts, costs would have stood at Rs 4,182 per tonne. Ambuja is targeting a reduction in costs to Rs 4,250 per tonne by FY27.