Post change of ownership, Ambuja Cements records a substantial jump in sequential EBITDA by 161% at Rs. 1,138 Cr

Sequential PAT grew 9x to Rs. 488 Cr

Robust YoY PAT growth by 13%

EDITOR’S SYNOPSIS

Cost optimization and operational synergies started yielding noticeable results
Stronger Balance Sheet, Company remains Debt Free
Cash and Cash Equivalent at the end of quarter stood at Rs. 9,454 Cr, augurs well for Company’s accelerated growth plans
Volume up by 7% at 13.7 MTPA Quarter on Quarter (QoQ)
Net Revenue up 11% at Rs. 8,036 Cr
Cost reduction QoQ by Rs 283 PMT (5%) at 5,026 PMT
EBITDA on QoQ basis jumped to 829 PMT from Rs. 340 PMT
PAT rose to Rs. 488 Cr as compared to Rs. 51 Cr last quarter

Ahmedabad, 7th February 2023: Ambuja Cements Limited (Ambuja), the building materials arm of Adani Cement and part of the diversified Adani group, today announced the financial results for the quarter ended December 31, 2022. The Company has embarked on a transformation journey this quarter which has resulted in sizeable operational efficiencies. Additionally, synergies with the group have supported cost optimization resulting in significant improvements in most business parameters of the Company. Ambuja Cements remains committed to achieving significant size, scale and market leadership with strong emphasis on margin expansion and world class ESG standards.

Operational Highlights (Consolidated):

Robust Volume growth of 7% QoQ, supported by an increase in blended cement (clinker factor reduced from 60.1% to 59.5%), better route planning and higher operational synergies with its subsidiary, ACC. Market leadership strongly maintained across key markets.
Kiln fuel cost reduced by 14% from Rs. 2.84 per ‘000 Kcal to 2.45 per ’000 KCal with change in coal basket, group synergies on coal procurement. Fuel cost to be further optimized in future.
Warehouse infrastructure also optimized. Direct sales improved from 44% to 50%, lead distance reduced from 263 kms to 248 kms, higher dispatches through rail. These measures are expected to further reduce logistics cost.
WHRS projects at Bhatapara, Rauri, Suli have been partially commissioned and will achieve full capacity of 39 MW by Q4FY23. Marwar 14 MW has been fully commissioned. WHRS projects at Ambujanagar and Maratha of 28 MW are under implementation & progressing well.

Financial Highlights:

Net Revenue was up by 11% QoQ at Rs. 8,036 Cr in line with volumes.
EBITDA rose by 161% at Rs. 1,138 Cr. EBITDA margin expanded from 6.2% to 14.6%.
Cost reduced by Rs. 283 PMT and expected to further reduce on cost optimization and leveraging synergies from adjacency businesses of the group.
Treasury Income increased by Rs. 42 Cr QoQ.
Efficient Inventory management and trade receivables.

“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. 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” Said Mr. Ajay Kapur, CEO Ambuja Cements.

He further 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 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) & 1 MTPA Grinding Unit. We are making good progress on our planned WHRS installation target.”

Unaudited Financial Results for the quarter ended December 31, 2022:

Particulars

UoM

Consolidated

Standalone

Oct-Dec

2022

Jul-Sep

2022

Oct-Dec

2021

Oct-Dec

2022

Jul-Sep 2022

Oct-Dec 2021

Sales Volume (Cement and Clinker)

Million Tonnes

13.7

12.8

14.2

7.7

7.1

7.2

Net Revenue

Rs. Cr.

8,036

7,245

7,710

4,218

3,722

3,772

EBITDA

Rs. Cr.

1,138

436

1,213

715

353

602

EBITDA Margin

%

14.6%

6.2%

16.2%

17.5%

9.7%

16.4%

PAT

Rs. Cr.

488

51

431

369

139

253