2024-11-10 08:42:33 :
The Delhi High Court (HC) stayed a show-cause notice and order demanding $218.87 Crore Stamp Duty & $According to an ANI report, the company was fined Rs 69 crore.
Delhi stamp collector orders Ambuja Cement Company (ACL) to pay stamp duty $218,87,81,917.28 and fine $The merger order dated November 14, 2011 was worth Rs 69 crore, it added.
Ambuja challenges orders
S&A Law Offices, on behalf of the company, told the court that ACL was exempt from stamp duty under Section 391-394(19) of the Companies Act as its order of merger was protected by the 1937 Notification.
The HC in its statement also noted that the show-cause notice issued by the stamp collector was “beyond the prescribed limitation period” and therefore the claim was withdrawn.
Ambuja Cement is a subsidiary of Adani Group.
Ambuja Cement second quarter results
Ambuja Cement announced its second quarter results on October 28, 2024, with mixed financial indicators. The company’s revenue increased slightly by 1.24% year-on-year; however, profits took a major hit, falling 42.5% from the same period last year.
Compared to the previous quarter, Ambuja reported a revenue decline of 9.57% and a profit decline of 29.45%. The trend has raised concerns among investors about the company’s short-term financial health.
Operating income was also affected, falling 50.36% month-on-month and 56.21% year-on-year. These figures indicate a challenging environment for cement manufacturers, which may impact future growth prospects.
Second quarter earnings per share (EPS) were $2.27, a year-on-year decrease of 39.29%. Falling earnings per share could be an important factor affecting investor sentiment.
Ambuja Cement’s overall outlook remains cautiously optimistic as analysts see potential for recovery despite the recent profit decline.
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