Higher sales volume to drive Ambuja Cements’ Q4 profit

Ambuja Cements, an Adani group company, is expected to report 23 per cent rise in profit driven largely by sales volume.

The company will announce the financial results on Wednesday.

Revenue is expected to rise 14 per cent while EBITDA in the quarter will increase 15 per cent, largely due to improved efficiency, according to analysts tracking the company.

• Also read: Elections dampen cement prices in April, hikes announced earlier rolled-back

Prabhudas Lilladher analysts estimate a 13 per cent year-on-year increase in sales volume to 16 million tonnes during January-March.

Realisation for Ambuja Cements will fall 4 per cent.

The company recently acquired Sanghi Industries and signed a Master Supply agreement along with its subsidiary ACC. This will improve its capacity utilisation to 85 per cent from 25 per cent. As per the supply agreement, the realisation for Sanghi Industries will be the cost of production plus 10 per cent mark up.

The ramp-up of Sanghi Industries will only increase inter-company sales as Ambuja has announced selling cement from Sanghi plants under the Ambuja Cements and ACC brands.

Ambuja is the second-largest cement company in India with a cement production capacity of 78 million tonne and 53 million tonne clinker capacity.

COMMENT NOW