Ambuja Cements, an Adani Group company, has reported that its net profit in the September quarter was down 52 per cent at ₹473 crore against ₹987 crore, logged in the same period last year largely due to fall in realisations amid weak demand.

The company’s income was flat at ₹7,890 crore (from ₹7,900 crore). Ebitda during the quarter was down 22 per cent at ₹780 per tonne (from ₹995 per tonne) while sales volume grew by 14 per cent to 14 million tonne (13 mt).

Its overall capacity utilisation was at 89 per cent.

Power and fuel expenses were down 10 per cent at ₹1,273 (from ₹1,421) per tonne while freight cost dipped 7 per cent to ₹1,281 (from ₹1,377) per tonne.

However, raw material cost increased 18 per cent to ₹767 (₹650) a tonne.

The company will continue to focus on innovation, digitisation, customer satisfaction and ESG as the core elements of business Ajay Kapur, Whole Time Director & CEO, Ambuja Cements.

Post completion of Orient Cement transaction, the company will achieve over 100 MTPA capacity by this fiscal year end, he added.

The increased use of low-cost imported pet-coke and e-auction coal reduced kiln fuel costs by 13 per cent, from ₹1.82 to ₹1.59 per ‘000 Kcal. Thermal energy consumption improved by 3 kCal/Kg of clinker, reaching 758 kCal.

The company reported ₹10,135 crore in cash and cash equivalents to accelerate future growth.

On a standalone basis, the company’s net profit declined to ₹501 crore (from ₹644 crore), while income rose to ₹4,478 crore (from ₹4,348 crore).

Strong infrastructure demand and ongoing needs from the housing and commercial sectors are anticipated to boost cement demand in second half of this fiscal.

The introduction of PMAY Urban Housing 2.0, with an allocation of ₹11 lakh crore and Government’s continued focus on infrastructure development augurs well for cement sector and demand in FY25 is expected to grow in the range of 4-5 per cent, it added.

Strategic investments in roads, railways along with urban and commercial amenities, is poised to drive robust growth.

Shares of the company were up ₹570 a piece.

Published on October 28, 2024