Ambuja Cements Delivers Robust Half Yearly Performance
Ambuja Cements, the cement and building material flagship company of the diversified Adani Group continued in its journey of growth & excellence and announced another robust financial result for the quarter & half year ended September 30, 2023. This could be achieved with high focus on cost leadership, business synergies and operational excellence. Operational excellence journey continues to deliver improved productivity & performance which has helped to reduce operating cost and improve bottom-line. WHRS at Suli, Rauri & Bhatapara (incremental capacity 12.5 MW) have become fully operational, leading to lower power cost. Fuel mix & source optimised along with increased use of alternative fuel leading to lower fuel cost Micro market management with higher sales of premium products resulting in higher realisations. Improved direct dispatch & rail co-efficient resulting in savings in logistics cost New Operating business model led to increased focus on improving business parameters resulting in reduction of other expenses Ajay Kapur, Whole Time Director & CEO, Ambuja Cements said, “Continuing our transformation journey, we are pleased to report a strong performance (standalone) in the second quarter of FY‘24, with a 8% increase in revenue, 147% increase in EBITDA at Rs 773 Cr and 364% increase in PAT at Rs 644 Cr compared to the previous year same quarter. Along with strong demand for our premium cement products, our business performance improved due to operational excellence, supply chain management and sales & marketing excellence, Adjacencies benefits with Group companies are lowering input costs which is boosting EBITDA & Margin growth. Operational efficiencies helped in reduction in Kiln fuel cost from Rs. 2.72/’000 kCal to Rs. 1.79/’000 kCal & CPP fuel cost from Rs. 2.27/’000 kCal to Rs. 1.65/’000 kCal Logistics efficiencies has resulted in Direct dispatch up from 48% to 58% Our commitment to sustainability remains strong. We are consistently taking measures to benefit our communities and reduce our carbon footprint. These include diminishing energy intensity, implementing Waste Heat Recovery Systems, and augmenting renewable energy generation For the new facility of 4 MTPA at Bhatapara apart from Equipment which has been ordered, civil execution work has started. Expected completion by Q2 FY’26 for its corresponding Grinding unit at Sankrail and Farakka order has been placed on EPC vendor and piling work has also started. Expected completion of these units by Q3 FY’25. For the new facility of 4 MTPA at Maratha LOI has been placed on EPC vendor, Site development and Pre project has also been started. EC and CTE approval are expected in this quarter. Expected completion by Q4 FY’26.
Tags : Ambuja Cements Micro market management Ajay Kapur EBITDA & Margin growth