Ambuja Cements reports 46% rise in profit to Rs 328.9 crore in Q3FY23

Ambuja Cements Q3 results: The revenue from operations of the company rose 10 per cent to Rs 4,128.5 crore from Rs 3,739.9 crore a year ago

Ambuja Cements recorded a 46 per cent rise in its standalone profit to Rs 368.99 crore in the quarter ending December 31, 2022 (Q3FY23) as compared to Rs 252.81 crore in Q3FY22. The volume rose seven per cent during the same period. 

The revenue from operations of the company rose 10 per cent to Rs 4,128.5 crore from Rs 3,739.9 crore a year ago. Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) came in at Rs 715 crore, with a margin of 17.5 per cent.

On a quarter-on-quarter basis, the net revenue was up by 11 per cent Rs 8,036 crore in line with volumes. Ebitda rose by 161 per cent at Rs 1,138 crore and Ebitda margin expanded from 6.2 per cent to 14.6 per cent.

"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 Ajay Kapur, CEO of Ambuja Cements.

"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) and 1 MTPA Grinding Unit. We are making good progress on our planned WHRS installation target," he added.