India’s Adani-owned Ambuja Cements’ Q4 profit rises as infra spending steps up

India’s Ambuja Cements on Tuesday reported a better-than-expected fourth-quarter profit, aided by increased government spending on infrastructure and lower raw material costs.

Cement makers have seen prices of key raw materials such as coal and petcoke drop in recent months, analysts say.

Ambuja’s profit after tax for the quarter ended March 31 rose to 5.02 billion rupees ($61.3 million)from 4.94 billion rupees a year earlier. Analysts, on average, had expected the Adani Group-owned company to report a profit of 4.55 billion rupees.

The margins on earnings before interest, taxes, depreciation, and amortization expanded to 22.6% from 17.3% a year earlier after kiln fuel costs fell 10%.

“With the rise in construction activities across our markets, we see the continuation of the elevated demand and strong volumes in the coming quarters as well,” Chief Executive Ajay Kapur said in a statement.

“We are encouraged by the government’s increased spending on infrastructure development,” the company said.

This report’s information was first seen on ZAWYA; to read more, click this link.