Ambuja Cements' 90% profit drop is mostly a tax-reversal base effect: last year had a Rs1,697 crore provision reversal. The real signal is EBITDA margin collapsing to 13.8% from 19.2% even as revenue

What happened: Ambuja Cements reported its Q2 results, with net profit falling 90% year on year to Rs 114 crore while revenue from operations rose. Key numbers: Net profit Rs 114 crore, down 90% YoY. Revenue Rs 6,113 crore, up 10% from Rs 5,579 crore a year earlier. Why it matters: The results show profit collapsing even as revenue grew, a sharp divergence between the top line and the bottom line for the September-ended quarter.

Ambuja Cements reported its Q2 results, with net profit falling 90% year on year to Rs 114 crore while revenue from operations rose.

The results show profit collapsing even as revenue grew, a sharp divergence between the top line and the bottom line for the September-ended quarter.