- Company’s operating EBITDA up 70% at Rs. 1,732 cr
- Income up 4 per cent at ₹8,322 crore
NE BUSINESS BUREAU
AHMEDABAD, JAN 31
Ambuja Cements, the cement and building materials flagship company of the diversified Adani Group, on Wednesday reported nearly a two-fold rise in its consolidated net profit to ₹1,090 crore against ₹488 crore logged in the same period last year due to lower cost and improved operational efficiency.
Income was up 4 per cent at ₹8,322 crore (₹8,023 crore). Cost was down at ₹6,885 crore (₹7,266 crore) as power and fuel bill dipped to ₹1,916 crore (₹2,341 crore).
Operating EBITDA was up at ₹1,732 crore (₹851 crore), while EBITDA per tonne was up 7 per cent at ₹1,225 (₹744).
Sales volume growth as up at 14.1 million tonne (13.7 mt).
Ajay Kapur, Whole Time Director & CEO, Ambuja Cements Limited, said, “Our performance is a reflection of our resilience and focused efforts. Our pursuit of excellence continues to propel us towards setting new benchmarks in our steady growth. We remain steadfast in our mission to deliver value for all stakeholders by redefining the industry landscape.”
Last December, Ambuja Cements completed the acquisition of 6.1-mtpa of Sanghi Industries. Early this month, Ambuja’s subsidiary ACC completed the acquisition of the balance 55 per cent stake in Asian Concretes and Cements with 2.8-mtpa capacity. The acquisitions take overall cement capacity to 77.4 mtpa, a jump of 15 per cent from last year.
This apart, the group has ongoing capacity expansion of 20 mtpa at various stages.
On Wednesday, the Board approved additional cement capacity expansion of 12 mtpa, which outlines a road map for 110 mtpa or 80 per cent of 140-mtpa targeted capacity by FY28.
Ongoing green power projects with a capex of ₹10,000 crore will take the green power share to 60 per cent of expanded capacity while reducing operating costs.
Additional cost savings are expected from ongoing investments on efficiency improvement projects.
Competitive basket of kiln fuel and AFR (alternative fuel and raw material) volume has helped reduce fuel cost by 25 per cent, said the company.
Long-term contracts for key raw materials such as fly ash and gypsum will help to secure the materials at optimised cost and curb volatility.
The company generated incremental ₹562 crore cash and cash equivalent in the December quarter. With this, the cash equivalent was at ₹8,591 crore after factoring the outflows related to the acquisition of Sanghi Industries, Asian Cements and ICDs (inter-corporate deposit) provided to Sanghi.
Financial Performance for the quarter ended December 31, 2023
| Particulars | UoM | Consolidated | Standalone | ||
| Q3
FY’24 |
Q3
FY’23 |
Q3
FY’24 |
Q3
FY’23 |
||
| Sales Volume
(Cement and Clinker) |
Mn T | 14.1 | 13.7 | 8.2 | 7.7 |
| Revenue from Operations | Rs. Cr | 8,129 | 7,907 | 4,440 | 4,129 |
| Operating EBITDA & Margin
(Excl. Other Income)
|
Rs. Cr | 1,732 | 1,021 | 851 | 639 |
| % | 21.3% | 12.9% | 19.2%* | 15.5% | |
| Rs PMT | 1,225 | 744 | 1,043 | 829 | |
| Other Income | Rs Cr | 194 | 117 | 108 | 76 |
| Profit Before Tax | Rs. Cr | 1,448 | 623 | 680 | 464 |
| Profit After Tax | Rs. Cr | 1,090 | 488 | 514 | 369 |
| EPS – Diluted | Rs. | 3.86 | 2.02 | 2.41 | 1.71 |
* For Ambuja Standalone, ~12% of Clinker capacity of Ambuja (Standalone) was under planned maintenance resulting lower cost absorption for the quarter, benefit will accrue coming quarter.
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