Ambuja Cements Q2 Results: Net profit tanks 90% YoY to Rs 114 crore on tax reversal effect; revenue rises 10%

Ambuja Cements recorded a steep decline in net profit during the second quarter, even as its revenue increased. The company’s earnings were affected by a tax reversal effect.

Profit falls to Rs 114 crore

Net profit came in at Rs 114 crore, representing a 90% year-on-year decline. The reported tax reversal effect was identified as a factor behind the sharp movement in profit.

Revenue increases 10%

Against the drop in profitability, Ambuja Cements reported a 10% rise in revenue. The contrasting performance places the focus on the difference between the company’s revenue growth and its bottom-line result for the quarter.

The results highlight how tax-related effects can materially influence reported earnings, even when revenue records an increase. However, the information available does not provide further details on the company’s operating performance, expenses or outlook.

What the results show

• Q2 net profit stood at Rs 114 crore.
• Net profit declined 90% year on year.
• Revenue rose 10%.
• A tax reversal effect affected the reported profit.

Ambuja Cements’ quarterly update therefore presents a mixed picture, with revenue growth alongside a significant decline in net profit.