Ambuja Cements Delivers Lifetime Highest Annualised PAT

BY Realty Plus

Ambuja Cements, the cement and building materials flagship of the diversified Adani Group, announced a record-setting standalone and consolidated financial results for Q4 and full year ended March 31, 2024. This strong performance is driven by improved KPIs in all operational parameters. 

Ajay Kapur, Whole Time Director & CEO, Ambuja Cements, said, “Our impressive financial performance during the year is a testament to the resilience and adaptability of our business model. It mirrors the Indian economy, which has emerged as a bright spot amidst a challenging global economic scenario. We remain steadfast in delivering long-term value and sustainable growth as we soar towards doubling capacities, investment in efficiency improvement, green power, assured supplies of raw-material and fuel.  We continue to play a vital role in the nation’s growth story. Our growth blueprint implemented in the previous year towards capacity-building through organic and inorganic way, operational efficiency, and decarbonisation measures are yielding excellent results. “Cost optimisation remains core part of our strategy”.

Includes exceptional item of Rs. 212 Cr and reversal of earlier years tax provision of Rs 257 Cr. KPIs like volumes, efficiencies, cost and capex have shown healthy improvements reinforcing Ambuja’s cost leadership. Thermal value (Consolidated) reduced from 755 kCal to 742 kCal , expect further improvement in coming quarters. Out of 1 GW renewable power, 200 MW Solar power will be operational in May’24, green power share will improve to ~30 %, cost saving / EBITDA improvement by ~Rs 30 PMT annualised. Optimised Fuel Basket, improved linkage coal materialisation and synergies with Group companies have resulted in 17% reduction in Kiln fuel cost (Consolidated) from Rs. 2.21 to 1.84 per ’000 Kcal. Better visibility of fuel cost as domestic linkage coal tied up and some imported shipments booked for the year with average expected price of Rs. 1.70/’000 kCal for this year, mitigates volatility, gives high EBITDA visibility

Focused Branding and Technical support services will yield in higher volume and expanded margins.Volume expansion along with improved operational parameters have resulted in growth in all business performances viz. Profitability, Cash & Cash Equivalent and Net Worth.

EBITDA PMT has grown by Rs 149 (17% YoY) and Margin expanded by 3.5 PP. A total of Rs. 1,945 Cr cash flows generated from the Operations in Q4, Rs. 5,646 Cr in FY 24.  Net worth increased by Rs 8,022 Cr during quarter and stands at Rs 50,846 Cr, company remains NIL debt & continues to maintain Crisil AAA (stable) / Crisil A1+ ratings. The Cash & Cash Equivalent stands at Rs. 24,338 Cr (including warrant money of Rs. 8,339 Cr received in April ‘24), highest amongst peers in the industry, enables accelerated growth in future. For Ambuja (standalone) business level working capital stands at 16 days reflecting agility in unblocking the funds in inventory and receivables.

For Ambuja Standalone, ~11% of Clinker capacity of Ambuja (Standalone) was under planned maintenance resulting lower cost absorption for the quarter and drawl of inventory from opening stock, benefit will accrue coming quarter.

 In context of the ongoing capex and growth plans of the company, the Board of Directors have recommended a dividend on equity shares at Rs. 2.00 per share, which is consistent with last year on annualised basis.

With Green power projects on track, power cost will be optimised with 60% sourced from green power, EBITDA maximisation & reduction in CO2 footprint. Green cement @ >80% of product mix, exemplifying commitment to eco-friendly practices & CO2 footprint minimisation

Net zero emissions by 2050, with near-term targets validated by SBTi. Ambuja and ACC created societal values   for >4.6 million people by contributing to fields like healthcare, education, employment, and sustainable livelihoods. Achieved 11x water positivity for Ambuja Cement, establishing leadership in water governance.

Reached an impressive 8x plastic negativity for Ambuja Cement through co-processing of plastic waste in cement kiln. Pledged to plant 8.3 million trees by 2030, in line with Adani Group's ambitious plan to plant 100 million trees. Ambuja and ACC put together used more than 21 million tonnes of waste derived resources in FY 24 embracing circular economy.

Tags : Ambuja Cements Adani Group building materials Ajay Kapur Indian economy tax Net zero emissions healthcare education employment sustainable livelihoods