Ambuja Cements, owned by the Adani Group, has reported a significant four-fold increase in its standalone net profit, reaching Rs 643.84 crore for the quarter ending in September 2023. This marks a notable surge compared to the net profit of Rs 138.9 crore in the same quarter of the previous year.
The company’s standalone revenue from operations in the September quarter also saw a healthy 8 per cent rise, amounting to Rs 3,969.79 crore, as compared to Rs 3,675.61 crore in Q2 FY23.
Ambuja Cements attributed its robust performance to factors such as “operational excellence and cost-saving projects,” leading to an EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 1,302 crore. The EBITDA margin expanded significantly, moving from 4.6 per cent to 17.5 per cent.
Ajay Kapur, Whole Time Director & CEO of Ambuja Cements, mentioned that the company’s improved business performance can be credited to strong demand for their premium cement products, along with a focus on operational excellence, supply chain management and sales & marketing efficiency. Additionally, benefits from working closely with Group companies have led to lower input costs, boosting EBITDA and margin growth.
Ambuja Cements expressed optimism about the cement industry, anticipating growth in volume due to a robust demand environment driven by increased spending on housing and infrastructure. The company sees healthy growth prospects and demand, providing an opportunity to expand capacity with cost advantages and explore strategic initiatives to enhance profitability.
