Ambuja Cements sees multifold rise in Q2 profit to Rs 987.24 crore; revenue up 4% at Rs 7,424 crore

New Delhi: Ambuja Cements Ltd on Wednesday reported a multifold increase in consolidated net profit at Rs 987.24 crore for the second quarter ended on September 30, driven by operational excellence and cost-saving measures.

The company, now part of the Adani Group, had clocked a net profit of Rs 51.30 crore in the July-September quarter a year ago, according to a regulatory filing by Ambuja Cements.

Its consolidated revenue from operations was up 4.10 per cent to Rs 7,423.95 crore during the quarter under review. It was Rs 7,131.39 crore in the corresponding period of the last fiscal year.

'This could be achieved with a high focus on cost leadership, business synergies and operational excellence,' said an earning statement from Ambuja Cements.

The consolidated results of Ambuja Cements include the financial performance of its step-down firm ACC Ltd, in which it owns around 51 per cent stake.

Ambuja Cements' total expenses were down 8.52 per cent at Rs 6,564.28 crore, from Rs 7,175.81 crore a year ago.

Its total consolidated revenue in the September quarter was up 9.1 per cent to Rs 7,900 crore.

In the September quarter, Ambuja Cements' consolidated clinker and cement sales volume was up 2.3 per cent to 13.1 Million Tonnes (MT).

During the quarter, Ambuja Cements' Kiln Fuel cost was reduced by 34 per cent and is expected to further come down through mix and source optimisation.

Ambuja Cements' 'EBITDA stood at Rs 1,302 crore (up by Rs 975 crore), driven by operational excellence and cost-saving projects,' it said.

'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,' Ambuja Cements CEO Ajay Kapur said.

On a standalone basis, Ambuja Cements reported a four-fold jump in net profit to Rs 643.84 crore in the July-September quarter, as against Rs 138.91 crore in the year-ago quarter.

Its standalone revenue from operations increased 8 per cent to Rs 3,969.79 crore, as against Rs 3,675.61 crore earlier.

This was led by a 'strong focus on enhancing brand visibility' and 'premium product positioning'

Ambuja Cements' own sales volume was up 7 per cent to 7.6 MT, helped by the expansion of the dealer's network, improving parameter efficiencies, and push of expansion of new markets.

Over the outlook, Ambuja Cements said the cement industry will witness volumetric growth as the demand environment remains robust on the back of increased housing and infrastructure spending.

'Healthy growth and demand prospects give our company the space to build new capacities with substantial cost advantage and explore strategic initiatives to boost profitability,' it said.

Shares of Ambuja Cements Ltd on Wednesday settled at Rs 406.75 on BSE, down 4.18 per cent from the previous close.