Adani Group-owned Ambuja Cement reported robust financial results for the April-June quarter of financial year 2023-24 (Q1FY24), with a substantial increase in consolidated net profit and revenue. The company’s focus on operational excellence, supply chain management, and sales and marketing strategies, coupled with synergies with Adani Group companies, contributed to its impressive performance. Additionally, cost optimization measures and upcoming capacity expansions further solidify Ambuja Cements’ position in the market.
**Key Financial Highlights:**
– Consolidated net profit surged by 31% YoY, reaching Rs 1,135.46 crore in Q1FY24, compared to Rs 865.44 crore in Q1FY23.
– Consolidated net revenue from operations witnessed a 9% YoY growth, totaling Rs 8,712.9 crore, up from Rs 8,032.88 crore in the previous year’s corresponding quarter.
– Ebitda (earnings before interest, tax, depreciation, and amortisation) increased significantly by 55% YoY, reaching Rs 1,930 crore, and the Ebitda margin expanded from 15.5% to 22.2%.
**Operational Achievements:**
Ambuja Cement’s sustained volume growth was supported by an increase in blended cement and improvements in efficiency parameters. The company maintained its strong market leadership across all key markets, further solidifying its position as a leading player in the cement industry.
**Cost Optimization Initiatives:**
Kiln fuel cost was notably reduced by 17% from Rs 2.49 per 1,000 kCal to Rs 2.07 per 1,000 kCal. Ambuja Cement plans to optimize fuel costs even further in the future through mix optimization. Moreover, the commissioning of 18 MW of Waste Heat Recovery Systems (WHRS) at Bhatapara, Suli, and Rauri, along with the expected addition of 33 MW at Suli, Ametha, and Maratha, is anticipated to bring the total WHRS capacity to 121 MW by the end of the year. These initiatives reflect the company’s commitment to efficiency and decarbonization.
**Market Performance:**
Despite the impressive financial results, shares of Ambuja Cement experienced a 2% decline in the intra-day trade, trading at Rs 452 apiece. However, it’s important to note that the broader market sentiment was also affected, with the benchmark S&P BSE SEnsex down by 0.5% at 10:00 AM.
**Outlook and Future Prospects:**
Ambuja Cement’s management remains optimistic about the company’s future prospects, highlighting the strong demand for premium cement products and the benefits derived from synergies with Adani Group companies. The ongoing focus on efficiency, sustainability, and technological advancements is expected to redefine the cement industry landscape and position Ambuja Cement for continued growth and success.
In conclusion, Ambuja Cement’s Q1FY24 results demonstrate its resilience and ability to capitalize on market opportunities. The company’s strategic approach, coupled with favorable industry dynamics, bodes well for its growth trajectory in the coming quarters.
