Adani-owned Ambuja Cements on Wednesday posted its fiscal first quarter profit at Rs 1,135.46 crore, up 31.2 per cent in comparison to Rs 865.44 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 8,712.90 crore, up 8.5 per cent as against Rs 8,032.88 crore during Q1FY23. The company EBITDA improved by 41 per cent YoY from Rs 888 PMT to Rs 1,253 PMT. “Along with the strong demand for our premium cement products, growth was fueled by our various competences in operational excellence, supply chain management, and sales and marketing excellence. Our synergies with the Adani Group companies are lowering input costs, which is boosting EBITDA growth,” said Ajay Kapur, Whole Time Director & CEO, Ambuja Cements.
While the total income for the quarter stood at Rs 8,976.14 crore, Ambuja Cements posted total expenses for Q1 at Rs 7,469.74 crore. “The Company has showcased a growth quarter on quarter, reinforcing strength beyond the product, led by business excellence in operations, cost efficiencies and business synergies,” it said in a statement. It said that the cost was reduced by Rs 348 PMT mainly driven by cost reduction journeys and expected to further reduce given the various initiatives outlined. “Operation excellence initiatives are aiding in reduction of operating cost, logistics cost and expansion of EBITDA margin,” it added.
Ambuja Cements showcased a sustained volume growth supported by increase in blended cement as well as improvement in efficiency parameters. During the quarter, WHRS of 18 MW at Bhatapara, Suli and Rauri have been commissioned. Additional 33 MW at Suli, Ametha and Maratha is expected this year. With this, Ambuja Cements said, the total WHRS capacity will be at 121 MW by year end.
Future outlook
Ambuja Cements maintained that India’s domestic consumer market is experiencing rapid growth, while the country’s industrial sector is also substantial, making it an attractive investment destination for multinational companies across various sectors such as manufacturing, infrastructure and services. Additionally, India’s status as the start-up capital of the world is drawing significant foreign investments, fuelled by its young population and technological advancements, it said.
“Our blueprint of improvements through Group synergies and capex for efficiency and decarbonization whilst creating opportunities, will redefine the cement industry landscape,” said Ajay Kapur.