Ambuja Cements reports a 46 per cent increase in its standalone profit to Rs 368.99 crore in the quarter ending 31 December 2022 as compared to Rs 252.81 crore in Q3FY22.
The company’s income from operations increased 10 per cent year on year to Rs 4,128.5 crore from Rs 3,739.9 crore. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was Rs 715 crore, with a margin of 17.5 per cent.
In line with volumes, net revenue increased by 11 per cent quarter on quarter to Rs 8,036 crore. Ebitda increased by 161 per cent to Rs 1,138 crore, while the Ebitda margin increased from 6.2 per cent to 14.6 per cent.
During the quarter, the cement sector saw higher production & capacity utilisation on account of pickup in demand. The Company has maintained a healthy top line and leadership position in its core markets with a stronger Ambuja & ACC product portfolio, said Ajay Kapur, CEO of Ambuja Cements.
He said that the Ebitda margins expanded due to relentless focus on reduction in fuel and logistics costs by leveraging synergies with Group Companies. Business initiatives are expected to further bring down operating cost, reduce clinker factor, reduce logistics cost, improve sales of blended cement and expand Ebitda margin.
“We expect cement demand to further grow in coming quarters on the back of increased infrastructure activities given sharp focus on infrastructure capex in this Budget,” he added.
“The Company remains debt free with a healthy position of Cash & Cash Equivalents, which augurs very well for its journey to achieve scale and market leadership. Our focus to ramp up capacity in an efficient way to ensure to be one of the lowest cost producers is on track. Ametha Integrated Unit is set to be commissioned by July 2023, which will increase Kiln capacity by 3.3 MTPA (EC approvals in hand for 2.75 MTPA) and 1 MTPA Grinding Unit. We are making good progress on our planned WHRS installation target,’ Kapur said.