The cement major's standalone net profit jumped 44.9% to Rs 1,048 crore on 18.4% increase in net sales to Rs 3,958 crore in Q2 CY22 over Q2 CY21.
The company's sales volume (cement+ clinker) grew by 15.11% YoY to 7.39 million tons and realizations improved by 2.96% YoY to Rs 5,357 per ton in Q2 CY2022.
Profit before tax in Q2 CY2022 stood at Rs 1,138 crore, up by 17.6% from Rs 967 crore in Q2 CY2021.
EBITDA dropped 28.65% to Rs 685 crore in Q2 CY2022 from Rs 960 crore recorded in Q2 CY2021. The company said that EBITDA was impacted by significant increase in fuel cost, partly mitigated by improved efficiencies owing to 'I CAN' program. EBITDA margin decreased to 17.3% in Q2 CY2022 as against 28.7% in Q2 CY2021.
On consolidated basis, the company's net profit slipped 14.2% to Rs 752 crore on 15.1% increase in net sales to Rs 7,943 crore in Q2 CY22 over Q2 CY21. EBITDA fell 39% to Rs 1,115 crore during the quarter. EBITDA margin stood at 14% in Q2 CY22 as against 26.5% in Q2 CY21.
Waste Heat Recovery (WHRS) projects at Marwar, Darlaghat and Bhatapara plants on track, will be commissioned in Q3 2022. Next phase of WHRS projects is progressing well, the company said.
Neeraj Akhoury, CEO of Holcim India and managing director & chief executive officer of Ambuja Cements, said: "Ambuja has recorded robust volume growth of 15%,and top line growth of 18%. Ambuja Kawach, our green cement, demonstrated a growth of 22% year on year.
The April to June 2022 quarter was impacted by rising fuel prices and related inflationary impacts. This was partly mitigated by improved efficiencies delivered under our 'I CAN' program which continues to deliver strong results. In addition, the Master Supply Agreement with ACC also led to strong performance on logistics costs.
Our expansion projects of 8.5 million tonnes of cement capacity at Ropar and Bhatapara are on track. The ongoing Waste Heat recovery projects of - 53 MW are to be commissioned in the third quarter of 2022, which will support our efficiency initiatives and lead to the delivery of our sustainability goals."
With respect to outlook, Ambuja Cements said that the Reserve Bank of India, during its June meeting, noted that the domestic economic recovery is gaining strength. Investment activity is to be aided by improving capacity utilisation, the government's capex push, and strengthening bank credit; this bodes well for cement demand. Further, rural consumption should benefit from a normal monsoon owing to improvement in agricultural prospects.
The company's cash & cash equivalent stood at Rs 4,517 crore as at 30 June 2022.
Ambuja Cements is one of the leading cement companies in India. It is part of the Holcim Group, a global leader in building materials and solutions and active in four business segments: cement, aggregates, ready-mix concrete and solutions & products.
Shares of Ambuja Cements were up 0.07% to settle at Rs 370.95 on the BSE.
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