Ambuja Cement Dec quarter net up 17 pct

Cement producer Ambuja Cement Ltd said its quarterly net profit rose 17 percent helped by better cement prices and higher volumes, but warned cost pressures may continue to hurt margins.

The company reported a net profit of 3.02 billion rupees for the three months to December 31, compared with 2.58 billion rupees a year earlier.

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Ambuja Cement, in which Switzerland's Holcim, the world's second-largest cement producer, holds a 46 percent stake, reported a 30.3 percent rise in net sales at 23.29 billion rupees.

"The realisation (selling price per bag) rose by 24 percent and volumes by 5 percent compared with last year, which led to revenue growth. There was an increase of 854 rupees per tonne in cement prices," Sanjeev Kumar Singh, sector analyst at Centrum Broking said.

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Post monsoon, cement makers hiked prices by an average 10-15 rupees across the country for 50 kg bags. The demand during the quarter rose 10 percent on an annual basis across the country, Centrum's Singh said.

Ambuja said that cost pressures due to rising energy charges, logistics and raw materials may continue to impact margins.

"Prices are expected to remain volatile in the short-term due to demand supply imbalances," the company said in a statement.

Ambuja, which follows a January-December accounting year, saw net profit drop 2.8 percent at 12.29 billion rupees for 2011. Net sales for the year rose 15.2 percent to 85.15 billion rupees.

Shares in the company closed up 0.68 percent at 178.20 rupees in a strong Mumbai market.