Last Updated on February 1, 2024 by BFSLTeam BFSLTeam
On January 31, 2024, Ambuja Cements Limited (BSE, NSE: AMBUJACEM) announced its Q3 2023-24 results, with a series of ups and Q3 operating EBITDA up at 70% at ₹1,732 Cr and PAT risen at 123% at ₹1,090 Cr.
Table of Content
Ambuja Cements Main Financial Q3 Result Takeaways
Delivering solid growth, the key cement producer in the country displayed the following results for Q3 FY24 and 9M FY24:
- For the quarter, the EBITDA (PMT) reached ₹1,225, a rise of ₹481 from last year’s fiscal at ₹744. This has been the Company’s highest EBITDA since the last ten quarters of its operations.
- The Company’s EBITDA margin was 21.3%, up by 8.4 pp and being the highest amongst the Company’s peers.
- The diluted EPS was ₹3.86, a rise of ₹1.84 YoY, and for 9M FY24, it was at ₹11.90, rising ₹5.62 YoY.
- The Company’s Cash & Cash equivalent for the quarter was at ₹8,591 Cr, the highest in the industry.
- The Company has registered an additional cement capacity of 32 MTPA under implementation at different stages, taking the total cement capacity to 110 MTPA (equal to 80% of the 140 MTPA targeted capacity by FY 2028).
Additional Read: Q3 Results Dashboard
Q3 FY24 Key Business Highlights
With a view to expansion and ongoing acquisitions, the Company had the following business highlights to share:
- In Q3, in December 2023, the company concluded the acquisition of Sanghi Industries possessing a capacity of 6.1 MTPA.
- In January 2024, the Company, under its subsidiary, ACC, concluded the acquisition of the remaining stake of 55% in Asian Cements and Concretes Pvt. Ltd. which has a capacity of 2.8 MTPA.
- Key acquisitions boost the market share of the Adani Group and take its cement capacity to 77.4 MTPA, a surge of 15% compared to the last fiscal year.
- The successful integration of major acquired companies is continuing well.
- The Company reported an ongoing cement capacity expansion of 20 MTPA at different stages.
- The Company’s board has approved an additional cement capacity expansion of 12 MTPA, and this establishes a road map for 110 MTPA cement capacity (80% of 140 MTPA capacity that is targeted by FY 2028).
- The Company’s continuing green power projects at a capex of ₹10,000 Cr will take its green power share to 60% of higher capacity while decreasing operating costs.
- The Total Cost PMT was reduced by ₹491 on a consolidated basis. Additional savings are estimated from ongoing investments in projects of efficiency improvement.
- A competitive basket of AFR volume and kiln fuel has aided in the reduction of fuel costs by 25%.
- Long-term contracts for prominent raw materials like gypsum and fly ash will help to secure the materials at optimised costs and mitigate volatility.
- The Company has witnessed an improvement in synergies within the cement business, and with the support of the Adani Group, this is boosting manpower costs and productivity.
- A micro-market analysis has aided in fixing issues and improving the ground network, and this should yield positive results in the quarters that lie ahead.
The Management’s Take on Q3 Results
The Whole Time Director and CEO of Ambuja Cements Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company’s performance is a reflection of focused effort and resilience.
- The Company continues to set new benchmarks for growth.
Ambuja Cements Q3 Results at a Glance
Here is a glimpse of the Consolidated financial results of Q3 (figures in ₹ Cr as reported by the Company, except where specified otherwise):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 |
| Revenue from Operations | 8,129 | 7,907 |
| EBITDA | 1,732 | 1,021 |
| EBITDA % | 21.3% | 12.9% |
| PBT | 1,448 | 623 |
| PAT | 1,090 | 488 |
| Diluted EPS | ₹3.86 | ₹2.02 |
Additional Check: Ambuja Cements Share Price
Q3 FY24 Result Summary
Ambuja Cements Limited is the flagship company operating under India’s largest conglomerate, the Adani Group. It stands as one of India’s top cement firms with subsidiaries like Sanghi Industries and ACC. With these subsidiaries, the cement capacity of the Adani Group has reached a whopping 77.4 million tonnes. The Company boasts 18 integrated cement manufacturing units with 18 cement grinding plants spanning India. Recognised as India’s Most Trusted Cement Brand by TRA Research in 2023, the Company is popular for its stress-free home-building solutions and top-of-the-line sustainable development projects.
With various firsts to its credit, like a captive 6-terminal port and the cleanest shipments of bulk cement delivered to customers, the Company has also launched distinctive products such as Ambuja Cool Walls, Ambuja Plus, Ambuja Compocem as well as Ambuja Kawach under the helm of Ambuja Certified Technology. Ranked as one of the best companies to work for as well as to have many innovative products while reducing its carbon footprint, Ambuja Cements has consistently been able to deliver positive financial and performance results. In Q3 FY24, the Company continued its path of excellence with net worth growing by ₹4,067 Cr and now stands at ₹42,824 Cr. The Company is well-positioned for growth with its present capacity at 77.4 MTPA surging to 140 MTPA (almost double). Investments in infrastructure and plants make Ambuja Cements a huge contender in the Indian cement sector today.
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Source: Ambuja Cements Investor Presentation on BSE
