Ambuja Cements, an Adani Group company, has reported that its consolidated net profit in the September quarter plunged to ₹51 crore against ₹891 crore logged in the same period last year, due to high cost and lower realisation.
Revenue was up at ₹7,143 crore (₹6,647 crore). Cement production in the quarter under review increased six per cent to 12.57 million tonnes (11.90 mt). Ebitda dipped to ₹334 crore (₹1,416 crore) while the Ebitda margin fell by 4.7 per cent against 21.7 per cent last year.
Overall expenses increased 30 per cent to ₹7,180 crore (₹5,544 crore) on the back of higher fuel and logistics cost at ₹2,733 crore (₹1,560 crore) and ₹1,823 crore (₹1,656 crore). Other expenses were up 17 per cent at ₹1,232 crore (₹1,049 crore). The company reported a surplus of ₹3,479 crore.
Transformational journey
Ajay Kapur, CEO of Ambuja Cements, said the cement industry was facing significant margin pressure resulting from the steep rise in global energy prices. However, recent cooling off in energy prices and post-monsoon demand pick up appears like silver lining for coming quarters.
Ambuja has embarked upon a transformational journey to gain both scale and market leadership, with focused efforts on ramping up capacity, and margin expansion, he added.
Taking advantage of the scope and resources of the Adani Group, the company aims to expand quickly and with greater impact to gain leadership position in Cement industry, he said.
“The promoter group company plans to infuse ₹20,000 crore through equity to fund the expansion program which will gather pace in the coming months. Considering the promise, we made to double our manufacturing capacity over the next five years, our growth plans are ambitious and this will be evident in 2023. While cost pressures have not gone away, the growth plans remain strong,” he said.