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Ambuja Cements, an Adani Group company, has reported that its net profit in the June quarter was down at ₹790 crore, against ₹1,135 crore logged in the same period last year, due to a fall in realisations.
Income was down three per cent at ₹8,666 crore (₹8,976 crore).
Overall expenses were up at ₹7,567 crore (₹7,470 crore). Sales volume was flat at 15.8 million tonnes (15.4 mt). EBITDA per tonne was down 25 per cent at ₹807 (₹1,082) due to weak demand.
Overall EBITDA dipped to ₹1,280 crore (₹1,667 crore).
The company has added 275 mt of new limestone reserves in the June quarter, taking its total reserves to 8.1 billion tonnes, at a premium of less than 3 per cent.
Ajay Kapur, Whole Time Director and CEO, Ambuja Cements, said the consistent fall in cost of operations brings visibility to achieving the targeted cost reduction of ₹530 per tonne by FY28.
“With Penna transaction expected to be closed by September quarter, our capacity will go up to 89 MTPA and well on track to achieve our 140 MTPA plan by FY28,” he added.
Share of green power at 18.4 per cent will improve to 31 per cent by the end of this fiscal. It will further increase to 60 per cent by FY28 and contribute to reduction in overall cost of power by 33 per cent, boosting EBITDA, he said.
Higher linkage coal volume and improved coal volume from captive mine Gare Palma has contributed to 17 per cent reduction in kiln fuel cost.
Integration of recently acquired Tuticorin grinding unit and Penna Cement will further improve market share and overall profitability, said the company.
Ambuja Cements has cash and cash-equivalent of ₹18,299 crore, enabling accelerated growth in the future, it added.
On a standalone basis, the company’s net profit was down at ₹571 crore (₹645 crore) and income dipped to ₹4,936 crore ( ₹4,919 crore).
The company expects cement demand to grow 8 per cent to 451 mt this fiscal, versus 9 per cent growth to 422 mt in FY24, backed by a capital outlay of ₹11.11 lakh crore.
Shares of the company were up one per cent at ₹680 on Wednesday.
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