On 1 November 2023: Ambuja Cements Ltd. (BSE, NSE: AMBUJACEM) announced its Q2 2023-24 financial results, registering an uptick in EBITDA, Operating Margin, and PAT that the flagship cement company credits to its operational excellence, business synergies, and cost leadership.
Table of Content
Consolidated Result Takeaways
Here are the overall consolidated highlights in Q2 results:
- The company’s Revenue grew to ₹7,424 Cr, a rise of 4.1%.
- EBITDA was at ₹1,302 Cr, up by ₹975 Cr, due to cost-effective projects and stellar operational performance.
- EBITDA Margin increased to 17.5% (from 4.6%), a rise of 12.9 pp.
- For Q2, Clinker and Cement sales volume growth was at 2.3% YoY, standing at 13.1 Mn T.
- Kiln fuel cost was lessened by 34% (₹2.72/’000 kCal to ₹1.79/’ kCal) estimated to further decrease through source and mix optimisation.
- WHRS power mix has risen by 11.2 pp to 15%.
Additional Read: Q2 Results Dashboard
Business Highlights of Note
The operational excellence journey of the company continues with consistency in deliveries of improved products. Here are some highlights of the business at large:
- There is an improvement in bottom-line and operating costs due to increased operational efficiency.
- In Q2, the WHRS at Rauri, Suli, and Bhatapara (with incremental capacity at 12.5 MW) became entirely operational and power costs were cut down.
- A low fuel cost has been achieved due to source optimisation and fuel mix.
- Micromarket management with higher sales of premium products has resulted in higher realisations.
- Improved rail coefficient and direct dispatch have resulted in savings in the cost of logistics.
- The New Operating Business Model has led to an enhanced focus on improving the parameters of business leading to a reduction in other expenditures.
Additional Read: Ambuja Cement Share Price
Management Commentary of Ambuja Cements
The Whole Time Director and CEO of Ambuja Cements Ltd. had some insights on the results and these are shared below:
- As the company continues its transformation journey, the company is pleased to report robust standalone performance in Q2 FY 23-24, with an 8% Revenue increase, a 147% EBITDA increase, and a 364% PAT increase compared to the same quarter of the last fiscal year.
- There has been a healthy demand for the company’s cement products and business performance due to operational excellence has seen a boost as well.
- There have also been enhancements in supply chain operations, marketing functions, and sales operations, and improvements in these.
- Logistics efficiency has resulted in Direct dispatch rising from 48% to 58%.
- The company’s commitment to sustainability remains sound with measures to actively reduce its carbon footprint in the areas it serves.
- For the company’s new facility at Bhatapara (4 MTPA), besides the ordering of new equipment, there has been the commencement of civil work expected to be completed in FY2026.
- For the new facility at Maratha (4 MTPA), LOI has been placed on the EPC vendor, and site development has commenced.
Financial Results
Here is a snapshot of the results (Consolidated):
| Metrics | UoM | Q2 FY 2023-24 | Q2 FY 2022-23 |
| Sales Volume (Cement and Clinker) | Mn T | 13.1 | 12.8 |
| Revenue from Operations | ₹ Cr | 7,424 | 7,131 |
| Operating EBITDA | ₹ Cr | 1,302 | 327 |
| EBITDA (PMT) | ₹/ton | 995 | 255 |
| EBITDA Margin | % | 17.5% | 4.6% |
| Profit Before Tax | ₹ Cr | 1,340 | 880 |
| Profit After Tax | ₹ Cr | 987 | 51 |
About Ambuja Cements Ltd.
Ambuja Cements Ltd. is an Indian company under the umbrella of the Adani Group. A household name in cement, with its subsidiary ACC, the company boasts 17 integrated cement plants, a capacity to manufacture 67.5 million tonnes, and 14 cement grinding facilities across the country. Recognised by TRA Research as India’s Most Trusted Cement Brand (2023) and one of the “Iconic Brands of India” by the Economic Times, the company has a long-standing reputation of providing ideal home-building solutions with its environment-friendly practices since its inception.
The company has, to its credit, many firsts. It boasts a captive port having four terminals that have facilitated cost-effective, timely, and cleaner bulk cement shipments. The company also has the distinction of having a world-class R&D centre which is largely responsible for the superior quality of the company’s products. With a commitment to making the brand more technologically efficient, the company aims to be a preferred brand within the building material category.
Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/4bc67e0f-5434-4b05-aa54-cbd5543e2e36.pdf
