In a big relief for Ambuja Cements, the Delhi High Court (HC) has set aside a show cause notice and order demanding ₹218.87 crore stamp duty and ₹69 crore penalty from the company, according to an ANI report.
The order from the Collector of Stamps, Delhi directed Ambuja Cements (ACL) to pay stamp duty worth ₹218,87,81,917.28 and a penalty of ₹69 crore on a merger order dated November 14, 2011, it added.
Representing the company, S&A Law Offices told the court that ACL was exempt from stamp duty charges under Sections 391-394 of the Companies Act (19), as its amalgamation order was protected by a 1937 notification.
In its statement, the HC also noted that the show cause notice issued by the Collector of Stamps was “beyond the prescribed period of limitation” and set aside the claim.
Ambuja Cements is a subsidiary of the Adani Group.
Ambuja Cements declared their Q2 results on October 28, 2024, revealing a mixed performance in the financial metrics. The company's topline saw a modest increase of 1.24% year-over-year; however, the profit took a significant hit, decreasing by 42.5% compared to the same quarter last year.
When comparing the current quarter to the previous one, Ambuja reported a decline in revenue of 9.57% and a 29.45% drop in profit. This trend raises concerns among investors about the company's short-term financial health.
Operating income also suffered, down 50.36% quarter-over-quarter and 56.21% year-over-year. These figures indicate a challenging environment for the cement manufacturer, which could impact future growth prospects.
Earnings per share (EPS) for Q2 stood at ₹2.27, reflecting a decrease of 39.29% year-over-year. This decline in EPS could be a significant factor influencing investor sentiment moving forward.
The overall outlook for Ambuja Cements remains cautiously optimistic, as analysts see potential for recovery despite the recent downturn in profits.
(With inputs from ANI)
