Ambuja Cements Reports Rs 643.84 Crore Standalone Net Profit in Q2 FY24

1 Nov 2023 , 03:31 PM

Ambuja Cements, the Adani Group’s cement manufacturing company, reported a four-fold increase in standalone net profit in Q2FY24, rising to Rs 643.84 crore from Rs 138.9 crore in the same quarter of the previous fiscal year.

Standalone revenue from operations for Ambuja Cements in Q2FY24 increased by 8% to Rs 3,969.79 crore, compared to Rs 3,675.61 crore in the previous year.

Cement and clinker sales volume for the company in Q2FY24 increased to 7.6 million tonnes from 7.1 million tonnes. Earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter surged to Rs 771.5 crore from Rs 313 crore, with an EBITDA margin improvement of 70 basis points (bps) to 11.9% from 11.2%, year-on-year.

On a consolidated basis, Ambuja Cements reported a net profit of Rs 792.96 crore, up from Rs 93.18 crore, with revenue increasing by 4.10% to Rs 7,423.95 crore from Rs 7,131.39 crore in the corresponding quarter of the previous fiscal year.

Operational excellence, supply chain management, and sales & marketing contributed to the business performance, and adjacencies with Group companies helped lower input costs and boost EBITDA and margin growth.

Ambuja Cements achieved operational efficiencies, reducing Kiln fuel cost from Rs 2.72/’000 kCal to Rs 1.79/’000 kCal and CPP fuel cost from Rs 2.27/’000 kCal to Rs 1.65/’000 kCal. Logistics efficiencies resulted in direct dispatch increasing from 48% to 58%.

The cement industry is expected to witness volumetric growth due to a robust demand environment, driven by increased housing and infrastructure spending. 

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