Post change of ownership, Ambuja Cements records substantial jump in sequential EBITDA by 161% at Rs. 1,138 Cr
Sequential PAT grew 9x to Rs. 488 Cr Robust YoY PAT growth by 13%
Ahmedabad (Gujarat) : Ambuja Cements Limited (Ambuja), the building materials arm of Adani Cement and part of the diversified Adani group, today announced the financial results for the quarter ended December 31, 2022. The Company has embarked on a transformation journey this quarter which has resulted in sizeable operational efficiencies. Additionally, synergies with the group have supported cost optimization resulting in significant improvements in most business parameters of the Company. Ambuja Cements remains committed to achieving significant size, scale and market leadership with strong emphasis on margin expansion and world class ESG standards.
Operational Highlights (Consolidated):
- Robust Volume growth of 7% QoQ, supported by an increase in blended cement (clinker factor reduced from 60.1% to 59.5%), better route planning and higher operational synergies with its subsidiary, ACC. Market leadership strongly maintained across key markets.
- Kiln fuel cost reduced by 14% from Rs. 2.84 per ‘000 Kcal to 2.45 per ’000 KCal with change in coal
basket, group synergies on coal procurement. Fuel cost to be further optimized in future.
- Warehouse infrastructure also optimized. Direct sales improved from 44% to 50%, lead distance reduced from 263 kms to 248 kms, higher dispatches through rail. These measures are expected to further reduce logistics cost.
- WHRS projects at Bhatapara, Rauri, Suli have been partially commissioned and will achieve full capacity of 39 MW by Q4FY23. Marwar 14 MW has been fully commissioned. WHRS projects at Ambujanagar and Maratha of 28 MW are under implementation & progressing well.
- Net Revenue was up by 11% QoQ at Rs. 8,036 Cr in line with volumes.
- EBITDA rose by 161% at Rs. 1,138 Cr. EBITDA margin expanded from 6.2% to 14.6%.
- Cost reduced by Rs. 283 PMT and expected to further reduce on cost optimization and leveraging synergies from adjacency businesses of the group.
- Treasury Income increased by Rs. 42 Cr QoQ.
- Efficient Inventory management and trade receivables.
“During the quarter, the cement sector saw higher production & capacity utilisation on account of pickup in demand. The Company has maintained a healthy top line and leadership position in its core markets with a stronger Ambuja & ACC product portfolio. EBITDA margins expanded due to relentless focus on reduction in fuel and logistics costs by leveraging synergies with Group Companies. Business initiatives are expected to further bring down operating cost, reduce clinker factor, reduce logistics cost, improve sales of blended cement and expand EBITDA margin. We expect cement demand to further grow in coming quarters on the back of increased infrastructure activities given sharp focus on infrastructure capex in this Budget” Said Mr. Ajay Kapur, CEO Ambuja Cements.
He further added “The Company remains debt free with a healthy position of Cash & Cash Equivalents, which augurs very well for its journey to achieve scale and market leadership. Our focus to ramp up capacity in efficient way to ensure to be one of the lowest cost producers is on track. Ametha Integrated Unit is set to be commissioned by July 2023, which will increase Kiln capacity by 3.3 MTPA (EC approvals in hand for 2.75 MTPA) & 1 MTPA Grinding Unit. We are making good progress on our planned WHRS installation target.”
To further strengthen ESG leadership, Ambuja’s Sustainability Strategy is led by its Sustainable Development 2030 plan.
- Significant thrust on increasing share of WHRS, AFR and renewable power.
- ‘Geoclean’, the sustainable and innovative waste management solutions arm was unveiled with a renewed focus and targets to increase the Thermal Substitution Rate of the plants to 30% by 2027.
- Water governance (8 times water positive), sustainable livelihood, women empowerment, rural infrastructure and social inclusion for the community remains highest focus area.
Awards and Recognition:
- ‘ESG India Leadership Awards 2022’ for initiatives on Water Efficiency, curbing
Greenhouse Gas Emissions and overall leadership in the Environment category.
- ‘FICCI CSR Award 2020-2021’ in the ‘Women Empowerment Category’ for CSR programs.
- The ‘National Award for Energy Excellence’ in Indian Cement Industry, under the Grinding
Category for the measures adopted in improving energy efficiency at the Roorkee plant.
- The ‘Platinum Award’ at the ‘IconSWM-CE Excellence Awards 2022’ on Sustainable Waste Management & Circular Economy for pre-processing and co-processing facility at Ambujanagar.
- The ‘Best CSR Health Award’ at the Impactful CSR award of Metropolis Healthcare Heroes of India Awards 2022 for CSR efforts in Bhatapara.
- Ambuja’s Annual Integrated Report was awarded by the Institute of Chartered
Accountants of India for Excellence in Financial Reporting.
About Ambuja Cements Ltd
Ambuja Cements Limited, part of the Adani Group, is among India’s leading cement companies. Ambuja, with its subsidiary ACC Ltd. has a capacity of 67.5 million tonnes with fourteen integrated cement manufacturing plants and sixteen cement grinding units across the country. Ambuja has been recognized as India’s Most Trusted Cement Brand by TRA Research in its Brand Trust Report, 2022. Ambuja has provided hassle-free, home-building solutions with its unique sustainable development projects and environment-friendly practices since it started operations. The Company has many firsts to its credit – a captive port with four terminals that has facilitated timely, cost-effective, cleaner shipments of bulk cement to its customers. To further add value to customers, the Company has launched innovative products like Ambuja Plus, Ambuja Cool Walls, Ambuja Compocem and Ambuja Kawach under the umbrella of Ambuja Certified Technology. These products not only fulfil important customer needs but also help in significantly reducing carbon footprints. Being an employee friendly workplace, Ambuja Cements has been ranked No. 1 in ‘Best Companies to Work For’ survey in 2022 by Business Today in the Construction and Infrastructure sector.