Adani Group's Ambuja Cements reported a significant increase in its standalone performance for Q3 2023, with operational revenue rising by 4.10% to Rs 7,423.95 crore ($1 billion). The growth was attributed to operational efficiency, cost-saving measures, benefits from interactions with Group companies, and reduced input costs.
EBITDA for the quarter reached Rs 1,302 crore, up by Rs 975 crore from the previous year, marking an expansion in EBITDA margin from 4.6% to 17.5%. According to CEO Ajay Kapur, key contributors to this growth included operational excellence, superior supply chain management, and marketing excellence.
Notably, the company achieved an 8% revenue increase, a 147% EBITDA increase at Rs 773 crore, and a staggering PAT increase of 364% at Rs 644 crore year-on-year. The company also managed to reduce 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. Direct dispatch was increased from 48% to 58%.
In addition to its improved financial performance, Ambuja Cements has started construction on a new facility at Bhatapara and is implementing Waste Heat Recovery Systems as part of its sustainability commitments. These initiatives are expected to reduce energy intensity, augment renewable energy generation, and benefit local communities.
Looking ahead, Ambuja Cements reported a surge in Q2 FY24 net consolidated profit after tax (Rs 987.24 crore) and total income (Rs 7,899.99 crore) from the previous year. The company also incorporated LOTIS IFSC, Ambuja Concrete North and West, and acquired a 56.74% stake in Sanghi Industries for Rs 1,674.22 crore.
As part of its expansion plans, Ambuja Cements has made an open offer at Rs 114.22 per share to acquire up to 26% additional shares from public shareholders. Clinker & Cement sales volume grew by 2.3% YoY at 13.1 million tonnes, and kiln fuel cost was reduced by 34%.
Work started on new facilities at Bhatapara and Maratha, with the latter awaiting EC and CTE approval this quarter. Orders for corresponding grinding units at Sankrail and Farakka have been placed, expected to be completed by Q3 FY2025. Site development and pre-project for the Maratha facility have commenced.
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