Ambuja Cements, an Adani Group company, has reported that its net profit in March quarter doubled to ₹1,526 crore against ₹763 crore logged in the same period last year, led by higher sales volume.

Income increased 11 per cent to ₹9,127 crore (₹8,250 crore).

The company has declared a dividend of ₹2 per equity share and fixed the record date as June 14 for paying the dividend after July 1.

It registered 17 per cent rise in cement and clinker sales to 16 million tonne. The annualised capacity utilisation was at 75 per cent. EBITDA was up 17 per cent at ₹1,026 (₹877) per tonne in the quarter under review.

Raw material cost was down marginally at ₹560 crore (₹564 crore), power and freight expenses dipped 13 per cent and 8 per cent to ₹1,216 crore (₹1,401 crore) and ₹1,258 crore (₹1,362 crore).

The company has entered into long-term supply contract for raw material supply to cut cost while use of green energy and route optimisation is expected to bring down expenses further. Ambuja Cements plans to cut cost by another ₹530 a tonne to bring down overall expenses ₹3,650 per tonne by FY28.

The company has reserves of ₹24,338 crore. It added 11.4 million tonne capacity in last 18 months as part of its 79 MTPA capacity addition to achieve 140 MTPA by 2028.

The company has added 142 million tonne of new limestone reserves at a premium of less than three per cent in March quarter taking the total reserves to 7.8 billion tonne.

Ajay Kapur, Whole Time Director & CEO, Ambuja Cements said the Group is committed to deliver long-term value and sustainable growth as it work towards doubling capacity, investment in efficiency improvement, green power, assured supplies of raw-material and fuel.

“While cost optimisation remains core of our strategy, the other measures including capacity-building, improving operational efficiency and decarbonisation initiatives are yielding excellent results,” he said.

On a standalone basis, Ambuja Cements net profit was up 6 per cent at ₹532 crore (₹502 crore) as income increased 12 per cent to ₹4,780 crore (₹4,256 crore). EBITDA was down 14 per cent at ₹837 (₹975) per tonne due to lower realisation.