Ambuja Cement Q4 Results FY2023, Profit at Rs. 502 crores

On 2nd May 2023, Ambuja Cement announced its quarterly results for the last quarter of FY2023.

Ambuja Cement Financial Highlights:

- Net Revenue up by 3% QoQ at Rs. 4,256 Crores. 
- EBITDA rose by 35% at Rs. 962 Crores.
- EBITDA margin expanded from 17.3% to 22.6%. The growth in revenue is despite the adverse impact on volumes from halting the operations at the Himachal Pradesh plants for 50 days  
- Cost reduced by Rs. 228 PMT and expected to further reduce cost optimization and leveraging synergies from adjacency businesses of the group.
- Improvement in Working Capital, Treasury Income increased by Rs. 23 Crores QoQ
- PAT rose to Rs. 502 Crores as compared to Rs. 369 Crores last quarter 

Ambuja Cement Business Highlights:

- Sustained volume growth supported by an increase in blended cement (clinker factor reduced from 62.5% to 60.6%), better route planning, and higher operational synergies with its subsidiary, ACC. Market leadership is strongly maintained across key markets. 
- Kiln fuel cost was reduced by 10% from Rs. 2.33 per ‘000 Kcal to 2.10 per ’000 KCal with a change in coal basket, and group synergies on coal procurement. Fuel cost to be further optimized in future
- Warehouse infrastructure also optimized. Direct despatch improved from 64% to 78%, rail co-efficient increased from 26% to 30%, and higher dispatches through rail. These measures are expected to reduce logistics costs. 
- WHRS projects at Marwar, Bhatapara, and Rauri have been commissioned for 33 MW. WHRS projects at Suli, Ambujanagar, and Maratha for 48 MW are under implementation & progressing well.
-  The Board of Directors has recommended a dividend on equity shares of Rs 2.50 per share (125%) 

Commenting on the results, Mr. Ajay Kapur, Whole Time Director & CEO, of Ambuja Cements said, “We are pleased to report another strong performance of Ambuja Cement which has been driven by our strategic initiatives on business excellence, operational efficiencies, and synergies. Our focus on operational excellence and cost optimization measures has yielded improved profitability. We have been able to maintain our growth trajectory and further strengthen our position in the market. With the rise in construction activities across our markets, we see the continuation of the elevated demand and strong volumes in the coming quarters as well. On the ESG front, we continue to transform the lives of the community around us and are consistently focused on sustainability in all our operational and growth planning. We continue to reduce our carbon footprint by
lowering the clinker factor, reducing thermal and electrical energy intensity, implementing Waste Heat Recovery Systems at our plants, and increasing our use of and capacity of generating renewable energy. We, at Ambuja, remain committed to delivering sustainable growth and value to our stakeholders, and we are confident that
our ongoing investments in capacity expansion and sustainability will enable us to achieve our long-term objectives.”