Ambuja Cements, the cement and building material company of the diversified Adani Group, on Wednesday announced the financial results for the quarter ended June 30, 2023, through an exchange filing. 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.
Operational Highlights:
Sustained volume growth supported by increase in blended cement as well improvement in efficiency parameters. Strong market leadership maintained in all key markets.
Kiln fuel cost reduced by 17% from Rs. 2.49 per ‘OOO kCal to Rs. 2.07 per ‘000 kCal. Fuel cost to be further optimised in future through mix optimisation.
WHRS of 18 MW at Bhatapara, Suli and Rauri have been commissioned in the current quarter. Additional 33 MW at Suli, Ametha and Maratha is expected this year. With this total WHRS capacity will be at 121 MW by year end.
Financial Highlights:
Net Revenue up by 9% YoY, at Rs. 8,713 Cr. EBITDA rose by 55%, at Rs. 1,930 Cr. and EBITDA margin expanded by 6.7% from 15.5% to 22.2%,
Cost reduced by Rs, 348 PMT mainly driven by cost reduction journey 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.
PAT rose by 31% to Rs, 1135 Crore as compared to Rs. 865 Crore last year in the same quarter.
Profit dipped to Rs 645 crore in comparison to Rs 1,048 crore in the last financial year.
Ajay Kapur, Whole Time Director & CEO, Ambuja Cements said, “We are delighted to report a strong performance in the first quarter of FY 2023-24, with a 9% increase in revenue, 55% increase in EBITDA and 31% increase in PAT compared to the previous year same quarter. 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 & marketing excellence. Our synergies with the Adani Group companies are lowering input costs, which is boosting EBITDA growth. Furthermore, our blueprint of improvements through Group synergies and CAPEX for efficiency and decarbonization whilst creating opportunities, will redefine the cement industry landscape.
We are transforming our surrounding communities and reducing our carbon footprint through strategic measures. These include lowering the clinker factor, diminishing energy intensity, implementing Waste Heat Recovery Systems, and augmenting renewable energy generation. Our long-term competitiveness remains robust, ensuring industry-leading profitability as we chase our ambitious growth goals. With a firm belief in our strategic approach, we are poised to continue our trajectory of outstanding performance as we are devoted to sustainable and responsible growth.”
Branding Initiatives:
Our sales and marketing strategies are aligned to drive growth and capture market opportunities. We launched a campaign focused on strengthening our positioning, evoking nostalgia by bringing back The Great Khali AD. We leveraged the India vs. Australia World Test Championship as our customers strongly associate with cricket. Our #strongHER campaign reached over 42 million viewers both on-ground and online thanks to our partnership with the Gujarat Giants in the Women's Cricket Premier League. For the greater good of customers and partners, our Technical Services program is enabling an ecosystem of right and sustainable building techniques.
Outlook:
The foundation for long-term economic growth remains strong, supported by several key factors. One of these factors is the burgeoning middle class, which is expanding rapidly and driving consumer spending. 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.
