Ambuja Cements Q2 Results: Net Profit Jumps 9-Fold To Rs 793 Crore

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posted on 1 year ago — updated on 1 second ago

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Ambuja Cements' revenue from operations during July-September 2023 rose 4.10 per cent to Rs 7,423.95 crore, against Rs 7,131.39 crore a year ago

Ambuja Cements on November 1 posted a whopping nine-fold jump in its consolidated net profit at Rs 792.96 crore on the back of higher other income and lower expenses. It is a growth of 750.99 per cent as compared with Rs 93.18 crore in the corresponding quarter last year.

Ambuja Cements’ revenue from operations during July-September 2023 rose 4.10 per cent to Rs 7,423.95 crore, against Rs 7,131.39 crore a year ago, according to a regulatory filing.

Its EBITDA stood at Rs 1,302 crore (up by Rs 975 crore), driven by “operational excellence and cost-saving projects”. EBITDA margin expanded by 12.9 percentage points from 4.6 per cent to 17.5 per cent.

Ajay Kapur, whole-time director & CEO of Ambuja Cements, said, “Continuing our transformation journey, we are pleased to report a strong performance (standalone) in the second quarter of FY24, with an 8 per cent increase in revenue, 147 per cent increase in EBITDA at Rs 773 crore and 364 per cent increase in PAT at Rs 644 crore compared to the previous year same quarter.”

He added that along with strong demand for premium cement products, the company’s business performance improved due to operational excellence, supply chain management and sales & marketing excellence, adjacencies benefits with Group companies are lowering input costs which is boosting EBITDA & margin growth.

“Operational efficiencies helped in reduction in Kiln fuel cost from Rs 2.72/’000 kCal to Rs 1.79/’000 kCal & CPP fuel cost from Rs 2.27/’000 kCal to Rs 1.65/’000 kCal. Logistics efficiencies has resulted in Direct dispatch up from 48 per cent to 58 per cent,” it added.

He said the company’s commitment to sustainability remains strong. The company is consistently taking measures to benefit its communities and reduce our carbon footprint. These include diminishing energy intensity, implementing Waste Heat Recovery Systems, and augmenting renewable energy generation. For the new facility of 4 MTPA at Bhatapara apart from Equipment which has been ordered, civil execution work has started.