Indian cement manufacturer Ambuja Cements has released its third-quarter figures, showing a 36% fall in net profit.
The company attributes the decline to “lower operating earnings before interest, tax, depreciation and amortisation (EBITDA), and due to an additional depreciation charge of Rs 28 crore [US$ 4.27 million]," levied as part of the 2013 Companies Act.
The report shows net profit for Ambuja of Rs 153.57 crore (US$23.41 m), compared with Rs 239.1 crore (US$ 36.4 million) in the same period in 2014.
Ambuja’s sales grew in the third quarter by 3.2% to 4.82 million tonnes, compared with 4.67 million tonnes in the same period in 2014,
The firm’s report stated, “Post monsoon construction activities are likely to pick up,” adding that the Indian government’s focus on housing, roads and infrastructure development is creating a positive outlook.
On publication of the report, the company’s shares rose 1.56%.
Ambuja, in which Swiss building material firm Holcim has a majority stake, also revealed the board has accepted the resignation of CFO Sanjeev Churiwala, effective from November 16, 2015.
While a suitable successor is sought, joint president corporate controlling, Sanjay Khajanchi, will serve as interim CFO.
Ambuja is now set to amalgamate with Holcim India Pvt Ltd, in a scheme approved by the High Courts of Delhi and Gujarat.
Following the amalgamation, Ambuja will control a 50.1% stake in cement maker ACC Ltd.