Adani Group-Owned Ambuja Cements Q1 Profit Up 31.2% To Rs 1,135.46 Crore

Ambuja Cements today reported an increase of 31.2 per cent in consolidated net profit at Rs 1,135.46 crore for the quarter ended on June 30, 2023, led by volume growth and reduction in operating cost.

The company, now part of the Adani Group, had clocked a net profit of Rs 865.44 crore in the April-June quarter a year-ago, Ambuja Cements said in a regulatory filing.

Its consolidated revenue from operations was up 8.46 per cent to Rs 8,712.90 crore during the quarter under review. It was Rs 8.032.88 crore in the corresponding period last fiscal.

This was led by "sustained volume growth supported by increase in blended cement as well improvement in efficiency parameters," said an earning statement by Ambuja Cements.

The consolidated results of Ambuja Cements include the financial performance of its step-down firm ACC Ltd, in which it owns around 51 per cent stake.

Ambuja Cements' total expenses were at Rs 7,469.74 crore, up 2.6 per cent from Rs 7,280.45 crore a year ago.

Its total consolidated revenue in the June quarter was up 9.87 per cent to Rs 8,976.14 crore.

However, on a standalone basis, Ambuja Cements reported a decline of 38.51 per cent in its net profit to Rs 644.88 crore in the April-June quarter, as against Rs 1,048.78 crore in the year-ago quarter.

Its standalone revenue from operations increased 18.29 per cent to Rs 4,729.71 crore, as against Rs 3,998.26 crore earlier.

"Cost reduced by Rs 348 PMT mainly driven by cost reduction journey and expected to further reduce given the various initiatives outlined," it said, adding "Operation excellence initiatives are aiding in reduction of operating cost, logistics cost and expansion of EBITDA margin." Sales volume of Ambuja Cements on a standalone basis was up 22.97 per cent to 9.1 million tonnes (MT), from 7.4 MT.

On a consolidated basis (including ACC), its sales volume was up 9.21 per cent to 15.4 MT in the April-June quarter. It was 14.1 MT in the corresponding quarter.

Ambuja Cements CEO Ajay Kapur said: "Our synergies with the Adani Group companies are lowering input costs, which is boosting EBITDA growth.

Furthermore, our blueprint of improvements through Group synergies and CAPEX for efficiency and decarbonization whilst creating opportunities, will redefine the cement industry landscape," he said.

Over the outlook, the Adani Group firm said the foundation for long-term economic growth remains strong, supported by several key factors such as the growing middle class driving consumer spending.

"India's domestic consumer market is experiencing rapid growth, while the country's industrial sector is also substantial, making it an attractive investment destination for multinational companies across various sectors such as manufacturing, infrastructure and services," it said.

Meanwhile, like ACC Ltd, Ambuja Cements also said it will not conduct any independent investigations against the allegations of financial misconduct made by the short-selling firm Hindenburg Research.

Adani Group had already undertaken a review by independent law firms, whose opinions confirmed that the company is in compliance with the requirements of applicable laws and regulations, said Ambuja Cement while declaring its quarter results on Thursday. Moreover, the final outcome of SEBI's investigation is still pending.

"Based on the foregoing and pending final outcome of the regulatory investigations and related proceedings as mentioned above, the management of the Group has decided to not carry out an additional independent investigation in the matter and unaudited consolidated financial results do not carry any adjustments in this regard," it said.

Shares of Ambuja Cements on Wednesday were trading at Rs 452.35 on BSE, down 2.00 per cent from the previous close.
 

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