Economy & Market
Ambuja Cements posts 4% rise in net profit in 2010, sales up 4.4%
Ambuja Cements has posted a consolidated net profit of Rs 1,263 crore for the year ended 2010, a 4 per cent rise over the net profit of Rs 1,217 crore in 2009. Net sales were up 4.4 per cent at Rs 7,390 crore compared with Rs 7,076.87 crore in 2009. The company has also announced a final dividend of equity shares at Rs 1.4 per share. With the interim dividend of
Rs 1.2 per share paid during the year, the total dividend for 2010 stands at Rs 2.60 per share. During the year, production was up 6.9 per cent at 20.1 million tonne, compared with 18.8 million tonne in 2009. Domestic sales rose 8 per cent to 19.5 million tonne while exports declined to 500,000 tonne. Ambuja Cements' annual capacity rose to 25 million tonne and will increase further to approximately 27 million tonne in 2011, following the completion of additional grinding capacity at the Bhatapara (Chhattisgarh) and Maratha (Maharashtra) plants. The company expects margins to remain under pressure in the short term, due to imbalance in demand and supply which will continue for some time and would see periodic price instability.