Ambuja Cements Q3 Results: Net profit rises 39% to ₹513.7 crore; revenue up 7.5% YoY
- Ambuja Cements’ standalone revenue from operations in Q3FY24 increased 7.5% to ₹4,439.5 crore from ₹4,128.5 crore, YoY. Sales volume rose to 8.2 million tonnes from 7.7 million tonnes in the same period last year.
Ambuja Cements, the Adani Group cement manufacturer, reported a standalone net profit of ₹513.69 crore for the third quarter of FY24, recording a growth of 39.2% from ₹368.99 crore in the year-ago quarter.
Ambuja Cements’ standalone revenue from operations in Q3FY24 increased 7.5% to ₹4,439.5 crore from ₹4,128.5 crore, YoY. Sales volume rose to 8.2 million tonnes from 7.7 million tonnes in the same period last year.
On a consolidated basis, the sales volume grew by 3% to 14.1 million tonnes, while the Kiln fuel cost was reduced by 25%.
At the operational level, earnings before interest, tax, depreciation and amortization (EBITDA) during the December quarter rose by 33% to ₹851.1 crore from ₹638.2 crore, while EBITDA margin improved by 370 basis points (bps) to 19.2% from 15.5%, YoY.
The company's management has clarified that for Ambuja Standalone, ~12% of Clinker capacity of Ambuja (Standalone) was under planned maintenance resulting lower cost absorption for the quarter, benefit will accrue in coming quarter.
The company generated a total of ₹562 crore in incremental cash and cash equivalent in Q3FY24, taking the total cash levels to ₹8,591 crore, at the end of December quarter.
“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,” said Ajay Kapur, Whole Time Director & CEO, Ambuja Cements.
In December 2023, Ambuja Cements completed the acquisition of Sanghi Industries having 6.1 MTPA capacity. This month, Ambuja’s subsidiary ACC completed the acquisition of the balance 55% stake in Asian Concretes and Cements Private Ltd (ACCPL) having 2.8 MTPA capacity.
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“These acquisitions reinforce the Adani Group’s market leadership and take its cement capacity to 77.4 MTPA, a jump of 15% from last year. Integration of these acquired companies is going on well,” Ambuja Cements said in a release.
There is an ongoing Cement capacity expansion of 20 MTPA at various stages. Board has also approved additional Cement capacity expansion of 12 MTPA, which outlines a road map for 110 MTPA (80% of 140 MTPA capacity targeted by FY 2028), it added.
Ongoing green power projects of capex of ₹10,000 crore will take green power share to 60% of expanded capacity while reducing operating costs. Total Cost PMT was reduced by ₹491 on consolidated basis.
“Higher consumption of domestic coal helped in improving coal cost and the trend is expected to continue. The opportunity buy of low cost petcoke in the past few weeks will help to further optimise fuel costs in the coming quarters and this augurs well in our cost optimisation journey,” the Adani Group company added.
At 1:15 pm, Ambuja Cements shares were trading 1.53% lower at ₹561.75 apiece on the BSE.
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Business NewsCompaniesCompany ResultsAmbuja Cements Q3 Results: Net profit rises 39% to ₹513.7 crore; revenue up 7.5% YoY
First Published:31 Jan 2024, 01:03 PM IST
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