Ambuja Cements Reports Four-Fold Jump in Q2 Profit, Expands Operations

Ambuja Cements, a prominent cement manufacturing company under the Adani Group, has achieved remarkable growth in its standalone net profit for the quarter ending in September 2023. The company's net profit for Q2FY24 soared to Rs 643.84 crore, marking a four-fold increase from Rs 138.9 crore in the same quarter of the previous fiscal year.

During the July-September quarter of FY24, Ambuja Cements witnessed a substantial 8% rise in standalone revenue from operations, which reached Rs 3,969.79 crore compared to Rs 3,675.61 crore year-on-year. Notably, cement and clinker sales volume in Q2FY24 climbed to 7.6 million tonnes from 7.1 million tonnes in the previous year.

The company's operational performance has also seen significant improvements. Earnings before interest, tax, depreciation, and amortization (EBITDA) surged to Rs 771.5 crore, up from Rs 313 crore, and the EBITDA margin improved by 70 basis points (bps) to 11.9%, compared to 11.2% in the previous year.

On a consolidated basis, Ambuja Cements reported a substantial increase in net profit, which surged to Rs 792.96 crore from Rs 93.18 crore. Consolidated revenue also saw a 4.10% increase, rising to Rs 7,423.95 crore from Rs 7,131.39 crore in the corresponding quarter of the previous fiscal year.

Ajay Kapur, Whole Time Director & CEO of Ambuja Cements, attributed this outstanding performance to various factors, stating, 'Along with strong demand for our premium cement products, our business performance improved due to operational excellence, supply chain management, and sales & marketing excellence. Adjacencies benefits with Group companies are lowering input costs, which is boosting EBITDA & margin growth.'

Ambuja Cements anticipates further growth in the cement industry, citing a robust demand environment driven by increased spending on housing and infrastructure projects. The company aims to capitalize on these positive growth prospects by expanding its capacities and exploring strategic initiatives to enhance profitability.

Despite an impressive set of results, Ambuja Cements' share price experienced a sharp decline, dropping nearly 4% following the results. As of 3:10 pm, the stock was trading at ₹408.40 per share on the National Stock Exchange (NSE).