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Ambuja Cements, an Adani Group company, has reported that its net profit in the September quarter was up multi-fold to ₹987 crore against ₹51 crore logged in the same period last year.
Income increased 9 per cent to ₹7,900 crore (₹7,241 crore).
Overall expenses were lower at ₹6,564 crore (₹7,176 crore) on the back of fall in power and fuel at ₹1,863 crore (₹2,734 crore) and freight cost at ₹1,800 crore (₹1,823 crore).
Power cost was lower due to use of alternative fuel resulting in klin fuel cost reduction to ₹1.82 per 1,000 kCal from ₹2.94. The company is planning to reduce freight and forwarding cost by ₹150 per tonne by route optimisation. Unified organisation structure has helped the company bring down other expenses by 11 per cent to ₹830 per tonne from ₹931.
EBITDA grew nearly four times to ₹1,302 crore (₹327 crore). EBITDA per tonne was up at ₹995 (₹1,082). Waste Heat Recovery System power mix has gone up 11.2 percentage points to 15 per cent.
Sales volume grew 2 per cent to 13 million tonne.
The company’s cash reserves were at ₹11,721 crore in September quarter (₹7,267 crore).
Acquisition of Sanghi Industries
The company expects to complete the ₹5,000-crore acquisition of Sanghi Industries by December quarter as part of its plan to increase capacity to 140 million tonne by 2028.
Ajay Kapur, Whole-Time Director & CEO, Ambuja Cements, said, “Along with strong demand for our premium cement products, the business performance improved due to operational excellence; supply chain management and adjacencies benefits with group companies have lowered input costs and boosted margin growth..”
Logistics efficiencies has resulted in direct dispatch to 58 per cent from 48 per cent.
Capacity addition
Apart from ordering new equipment, civil work has started for the 4-mtpa cement plant at Bhatapara in Chhattisgarh and is expected to be completed by Q2 FY26. Similarly, order has been placed on EPC vendor and piling work has started for grinding unit at Sankrail and Farakka in West Bengal, and is expected to be completed by Q3 FY25.
The company is also planning 4-mtpa plant at Maratha LOI and will be completed by Q4 FY26.
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