Ambuja Cements Q4 profit up 64% to ₹1,055 cr

Adani Group-owned Ambuja Cements reported a 63.8% year-on-year increase in the consolidated net profit to ₹1,055 crore (attributable to the owners) in the March quarter of FY24, as against ₹644 crore in the same period last year. The company’s revenue during the quarter stood at ₹8,893.99 crore, up 11.6%, as against ₹7,695.98 crore in the corresponding period of the previous fiscal year. The sales volume of Ambuja Cements improved by 17% to 16.6 million tonnes (MnT) during the quarter under review, as against 14.1 MnT in the March quarter of FY23.

During the quarter under review, the cement major’s total income stood at ₹9,127.45 crore, up 10.6%, as against ₹8,250.45 crore in the March quarter of FY23. The company’s operating EBITDA (earnings before interest, tax, depreciation and amortisation) stood at ₹1,699 crore, as against ₹1,239 crore in the same period last year. Ambuja Cement’s EBITDA margin improved to 19.1% in the March quarter as against 15.6% in the corresponding quarter of the previous fiscal year.

For FY24, the company’s consolidated net profit stood at ₹3,576.79 crore, up 38.4%, as against ₹2,583.40 crore in FY23. The company’s revenue stood at ₹33,160 crore in FY24, up 6.8%, as against ₹31,037 crore in FY23.

“We remain steadfast in delivering long-term value and sustainable growth as we soar towards doubling capacities, investment in efficiency improvement, green power, and assured supplies of materials and fuel. We continue to play a vital role in the nation’s growth story. Our growth blueprint implemented in the previous year towards capacity-building through organic and inorganic way, operational efficiency, and decarbonisation measures are yielding excellent results. “Cost optimisation remains core part of our strategy,” says Ajay Kapur, whole-time director and CEO, Ambuja Cements.  

According to the company, out of one-gigawatt renewable power, “200 megawatt (MW) solar power will be operational in May 2024, green power share will improve to -30% cost saving/EBITDA improvement by ₹30 PMT annualised.”

The board of directors of the company has recommended a dividend on equity shares at ₹2 per share, which is consistent with last year on an annualised basis, says the company.

The company expects the cement industry’s outlook to remain positive driven by pre-election spending, the government’s emphasis on infrastructure development, and sustained real estate activity. “Adani Cement will have the advantage of accelerated growth, cost leadership, and synergy with group businesses which will help to sustain market leadership,” says the cement major.

The share price of Ambuja Cements closed 1.60% lower at ₹619.70. In the past one month, three months and one year, the counter has surged 1.21%, 8.62%, and 56.37%, respectively. In the year-to-date period, the counter has surged 15.90%.