Coal news and updates

Ambuja Cement has reported that its standalone net profit increased 60 per cent in the December quarter to ₹176 crore (₹110 crore) on the back of lower tax outgo.

 

Net sales were down seven per cent at ₹2,197 crore (₹2,356 crore).

 

The company has declared a dividend of ₹1.20 a share, and with this, the total dividend paid during the year stands at ₹2.80 a share.

 

Sales volume were down at 5 million tonnes (5.48 mt) due to weak demand particularly after the demonetisation of high value currency in November.

 

During the quarter under review, EBITDA increased marginally by 0.3 per cent, despite sharp focus on cost savings. Its tax outgo was down at ₹24 crore (₹119 crore) after adjusting for tax paid earlier.

 

Operating cost was down at ₹2,058 crore (₹2,215 crore) as power and fuel bill came down to ₹415 crore (₹448 crore) and logistics cost was down at ₹578 crore (₹620 crore).

 

The use of pet coke and alternate fuels, besides significant reduction in energy cost led to substantial savings, said the company.

 

Ajay Kapur, CEO, said rapid adoption of cashless transaction in the December quarter helped the company retain its market share and be part of infrastructure and affordable housing development projects being developed by the government.

 

Larger penetration into rural markets buoyed by good monsoon and range of specialised product solutions should lead to better performance in the coming quarters, he said. On consolidated basis, the company’s net profit almost doubled in the December quarter to ₹ 206 crore (₹111 crore) and sales were at ₹4,861 crore (₹2,361 crore).

 

Ambuja Cement expects the adverse impact of currency demonetisation to end by March quarter and the government focus on housing and infrastructure to boost demand thereafter.

 

The company’s scrip were up 0.55 per cent to ₹239 on Monday.

Source: The Hindu Business Line