Ambuja Cements records PAT of ₹369 cr in Q4 on lower fuel costs, shares rally
1 min read . Updated: 07 Feb 2023, 03:46 PM IST
Premium- Shares of Ambuja were trading at ₹386.10 apiece on the NSE, up 1.67% in late afternoon deals
Ambuja Cement, now a part of Adani Cement, on Tuesday reported a 46% jump in standalone net profit at ₹368.99 crore for the quarter ended 31 December, 2022 (Q4FY23) as fuel costs fell and demand rose. The net profit was ₹252.81 crore during the same period last year. Shares of Ambuja were trading at ₹386.10 apiece on the NSE, up 1.67% in late afternoon deals.
Revenue from operations of the company that follows the January-December financial year rose by 10% to ₹4,128.52 crore in the quarter under review from ₹3,739.92 crore in the year-ago period.
EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization came in at ₹715 crore, with a margin of 17.5%.
“EBITDA margins expanded due to relentless focus on reduction in fuel and logistics costs by leveraging synergies with Group Companies," Ambuja Cements CEO, Ajay Kapur said.
Kapur further said, “During the quarter, the cement sector saw higher production & capacity utilisation on account of pickup in demand. The company has maintained a healthy top line and leadership position in its core markets with a stronger Ambuja & ACC product portfolio."
He added, “Business initiatives are expected to further bring down operating cost, reduce clinker factor, reduce logistics cost, improve sales of blended cement and expand EBITDA margin."
"We expect cement demand to further grow in coming quarters on the back of increased infrastructure activities given sharp focus on infrastructure capex in this Budget," the Ambuja Cements CEO said.
Ambuja said it maximised low-cost domestic sources of coal as its own coal mine, Gare Palma, expanded and that it did not import any petcoke from the US.
The company also said its parent was considering engaging independent agencies to handle compliance.
The management of Adani group entities is considering appointing independent firms to "look into the issues and compliance of applicable laws and regulations, related party transactions, internal controls etc," the company said.
Ambuja is one of several Adani group companies caught in the eye of a storm since 24 January when US short-seller Hindenburg Research raised concerns on the conglomerate's debt levels and use of tax havens, allegations the group has denied.
