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Ambuja Cements Ltd reported a 1.6 per cent rise in net profit in the March quarter to ₹502.4 crore, and an 8.4 per cent rise in revenue to ₹4,256.3 crore, on higher volumes from an increase in blended cement. The bottom line was affected by a one-time expense of ₹80.7 crore due to a restructuring cost during the quarter.
Its EBITDA was up 16.7 per cent y-o-y at ₹962 crore, while the corresponding margin expanded to 22.6 per cent from 21 per cent a year ago. For the full year, the operating margin was at 20.9 per cent.
The company expects EBITDA per tonne in FY24 to be in the ₹1,200-1,400 range through cost reduction and operational synergies. In Q4, it was ₹1,079 on a consolidated basis and ₹1,192 on a standalone basis.
The cost per tonne went down by ₹228 and the company expects further reduction through optimisation and leveraging synergies between the two companies as well as with other group companies, bringing down raw material costs. This includes entering into long-term contracts with the group’s thermal power companies.
On a standalone basis, the company saw its cement sales volumes rise 8 per cent to 8.1 million tonnes in the March quarter.
Growth trajectory
“We have been able to maintain our growth trajectory and further strengthen our position in the market. With the rise in construction activities across our markets, we see the continuation of the elevated demand and strong volumes in the coming quarters as well,” said Ajay Kapur, CEO.
The company’s board also recommended a dividend of ₹2.50 per share. On a consolidated basis, the company reported a net profit of ₹763 crore, a fall of nearly 11 per cent on year while its revenue came in almost flat at ₹7,966 crore.
The companies (Ambuja Cements and ACC) have ended the year with cash and cash equivalents of ₹11,530 crore, up 22 per cent from the December quarter and up 59 per cent from September-end. The doubling of capacity to 140 million tonnes over the next five years is expected to be funded by internal accruals.
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