Ambuja Cements, the cement and building material company of Adani Cement and part of the diversified Adani Group, announced the financial results for the quarter and full year ending March 31, 2023 (15 months). Synonymous with strength, the company has reinforced beyond the product through its stronger financial performance led by excellence in operations, cost efficiencies and business synergies.
Sustained volume growth supported by an increase in blended cement (clinker factor reduced from 62.5% to 60.6%), better route planning and higher operational synergies with its subsidiary, ACC. Market leadership strongly maintained across key markets. The Kiln fuel cost reduced by 10% from Rs. 2.33 per ‘000 Kcal to 2.10 per ’000 KCal with change in coal basket, group synergies on coal procurement. Fuel cost to be further optimized in future.
The warehouse infrastructure also optimized with direct despatch improved from 64% to 78%, rail co-efficient increased from 26% to 30%, higher dispatches through rail. These measures are expected to reduce logistics cost.
The net revenue up by 3% QoQ at Rs. 4,256 Cr. EBITDA rose by 35% at Rs. 962 Cr. EBITDA margin expanded from 17.3% to 22.6%. The growth in revenue is despite the adverse impact on volumes from halting of the operations at the Himachal Pradesh plants for 50 days. The cost was reduced by Rs. 228 PMT and expected to further reduce on cost optimization and leveraging synergies from adjacency businesses of the group.
Business excellence initiatives are expected to further bring down operating cost, reduce clinker factor, reduce logistics cost, improve sales of blended cement and expand EBITDA margin. Improvement in Working Capital, Treasury Income increased by Rs. 23 Cr QoQ.
