Oct 28 Reuters India39;s Ambuja Cements beat estimates for secondquarter profit on Monday, as higherthanexpected volume growth helped mitigate a decline in cement prices.

The company said its profit after tax fell 22 yearonyear to 5.01 billion rupees 59.6 million, but came in above analysts39; average estimate of 3.57 billion rupees, as per data compiled by LSEG.

Revenue from operations for Ambuja, which is majority owned by billionaire Gautam Adani39;s portstopower eponymous conglomerate, rose 6.1 to 42.13 billion rupees.

Sales volumes for the reported quarter climbed nearly 10, higher than the 4.48 range forecast by three analysts.

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KEY CONTEXT

Cement prices hit a fiveyear low of 336 rupees per bag in the September quarter, according to Ambit Capital, due to an industrywide rampup in production to meet mediumterm demand expectations, leading to greater supply.

Ambuja, like its Adaniowned peer, still benefited from steady volume sales, further supported by lower prices, in a quarter usually considered weak as monsoons trigger a slowdown in cement demand.

Market leader UltraTech Cement posted its first quarterly revenue drop in four years, but also flagged early signs of price recovery.

Ambuja last week announced its second acquisition of the year, which was the latest of the string of industrywide deals that has intensified competition.

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