Ambuja Cement reports quadrupling 2Q profit

Ambuja Cement reports quadrupling 2Q profit
02 November 2023

Ambuja Cements, part of Adani Cement Industries, saw profit quadruple in the 2QFY23-24 to INR6440m (US$77.4m) from INR1390m in the year-ago quarter.

The company’s revenue advanced eight per cent YoY to INR39,700m in the 2QFY23-24 while cement and clinker sales volumes advance seven per cent to 7.6Mt.

Ambuja Cements saw its expenses decline by two per cent YoY with fuel costs down by nearly a third. As a result, EBITDA improved by nearly 150 per cent to INR7740m and the EBITDA margin more than doubled to 19.5 per cent.

"Along with strong demand for our premium cement products, our business performance improved due to operational excellence, supply chain management and sales & marketing excellence," said Ambuja’s CEO, Ajay Kapur.

Adjacencies benefits with Adani group companies are lowering input costs which is boosting EBITDA and margin growth. Operational efficiencies also helped in reduction in kiln fuel cost by a third, Kapur said.

Project update
In terms of the company’s current projects, Ambuja has ordered equipment and civil work has started for its 4Mta plant in Bhatapara. The work is expected to be completed in 24 months.

Meanwhile, the grinding units in Sankrail and Farakka have seen the start of piling work and an order has been placed with the EPC vendor.

A letter of intent for EPC vendors has also been placed for the 4Mta plant at Maratha. Work on this project is expected to be completed by March 2026.

Published under Cement News