Ambuja Cement Q3FY22 PAT dips by 86% to Rs93.18 crore on sharp spike in power and fuel costs

22 Oct 2022 , 08:22 PM

Ambuja Cement Ltd reported 7.46% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs7,143cr. Revenue contraction was -11.08% in sequential terms.

For the quarter, the volume growth was 12% from 6 MT to 6.7 MT on a yoy basis. The company gained in the quarter from a reduction in logistics cost but the cost of power and fuel nearly doubled on a yoy basis and that caused most of the profit damage in the quarter.

Ambuja, after it has been taken over by the Adani group now plans to double its manufacturing capacity over the next five years.

In fact, the combined capacity of ACC and Ambuja would be raised from 70 MTPA to 140 MTPA over the next five years.

Consolidated Profit after tax (PAT) for September 2022 quarter was down -86% at Rs93.18cr on the back of a sharp spike in power and fuel costs.

For the quarter ended September 2022, power and fuel costs were up 75.2% yoy at Rs2,733 crore while the freight and forwarding costs were up a more moderate 10% at Rs1,823 crore in the quarter.

EBITDA for the quarter stood at Rs304 crore. PAT margins were lower at 1.30% in the Sep-22 quarter compared to 10.02% in the Sep-21 quarter and compared to 9.36% in June 2022 quarter. EBITDA margins have fallen sharply from 22% in the September quarter last year to just about 8.4% in the current quarter.

Financial highlights for Sep-22 compared yoy and sequentially

	Ambuja Cements
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 7,143.17	₹ 6,647.13	7.46%	₹ 8,032.88	-11.08%
Net Profit (Rs cr)	₹ 93.18	₹ 665.81	-86.01%	₹ 752.00	-87.61%
Diluted EPS (Rs)	₹ 0.47	₹ 3.35		₹ 3.79
Net Margins	1.30%	10.02%		9.36%