Ambuja Cements Ltd share Price Today

Ambuja Cement (now Adani group conglomerate) is a large cement player with capacity of 31.5 MT across North (35%), South (24%), West (~20%), East (~21%) in India. It has a large marketing set-up & pan-India presence.

• The upcoming new capacity in Punjab (1.5 MT) and eastern region (7.0 MT including clinker 3.2 MT) will enhance its cement capacity by ~8.5 MT to 40 MT. In phase II, the company plans to reach over ~50 MT capacity through capacity expansion in western region along with significant de-bottlenecking
• The management plans to double its consolidated capacity to 140 MT (ACC + Ambuja) from current ~70 MT in the next five years

Ambuja Cements’ financial performance for Q4CY22 improved sharply backed by improved operational efficiencies through group synergies.

• Net revenues were up 10.4% YoY, 12.5% QoQ to ₹ 4128.5 crore, led by better sales volume
• EBITDA margin rose 687 bps QoQ to 15.2% (vs. I-direct estimate: 12.2%). On per tonne basis, EBITDA/t was ₹ 813/t vs. I-direct estimate of ₹ 678/t
• While the company incurred exceptional expenditure of ₹ 56 crore towards IT transition costs, better margins and higher other income led to net profit growth of 46% YoY, 167% QoQ to ₹ 369 crore

Ambuja Cements announced Q3FY24 results:

Financial Performance

• Revenue: Increased to Rs 8,129 crore in Q3FY24 from Rs 7,907 crore in Q3FY23. 
• Sales Volume: Grew by 3% to 14.1 million tonnes in Q3FY24.
• Operating EBITDA: Increased by 70% to Rs 1,732 crore in Q3FY24.
• Profit After Tax (PAT): Saw a rise of 123% to Rs 1,090 crore for the same period.
• Earnings Per Share (EPS): Diluted EPS went up from Rs 2.02 in Q3FY23 to Rs 3.86 in Q3FY24
• Cash & Cash Equivalents: Reported at Rs 8,591 crore, the highest in the industry.
• Operating EBITDA Margin: Improved by 8.2 percentage points to 21.3% in Q3, the highest amongst its peer group.

Capacity Expansion

• New Acquisitions: Completed the acquisition of Sanghi Industries (6.1 MTPA) and a 55% stake in Asian Concretes and Cements Pvt. Ltd. (2.8 MTPA).
• Total Capacity: With new additions, capacity is at 77.4 MTPA, a 15% increase from the previous year.
• Expansion Plans: Implementing 32 MTPA additional cement capacity; approved a further 12 MTPA expansion targeting 110 MTPA by FY 2028.

Cost Management

• Kiln Fuel Cost: Reduced by 25% year-over-year.
• Total Cost PMT: Decreased by Rs 491 on a consolidated basis, with additional savings expected from ongoing efficiency improvement projects.

Environmental Initiatives

• Green Power Projects: With an investment of Rs 10,000 crore, these projects will contribute to 60% of green power for the expanded capacity, while reducing operating costs.

Outlook

• Industry Growth Projections: Cement industry demand growth estimated between 7% and 8% due to investments in infrastructure and real estate.

Ajay Kapur, Whole Time Director & CEO, Ambuja Cements, said, "Our performance is a reflection of our resilience and focused efforts. Our pursuit of excellence continues to propel us towards setting new benchmarks in our steady growth. We remain steadfast in our mission to deliver value for all stakeholders by redefining the industry landscape.”

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