Earnings | Ambuja Cements Ltd. (NSE:AMBUJACEM): Q3FY23 Results Out; Total Income rise 4% YoY

Ambuja Cements Ltd. (NSE:AMBUJACEM) is a leading cement manufacturer in India. The company operates through a network of over 20 cement plants and has a strong distribution network that caters to customers across India. Ambuja Cements has won several awards for its sustainable business practices and is committed to reducing its carbon footprint.

Ambuja Cements has announced its Q3FY23 results, revealing that its cost optimization and operational synergies are starting to yield noticeable results. The company remains debt-free and has cash and cash equivalents of Rs 9,454 crore, which bodes well for its accelerated growth plans. Volume was up by 7% QoQ at 13.7 MTPA, while net revenue rose 11% to Rs 8,036 crore. Cost reduction QoQ amounted to Rs 283 PMT (5%) at 5,026 PMT, and EBITDA rose by 161% to Rs 1,138 crore, with EBITDA margin expanding from 6.2% to 14.6%. PAT also rose to Rs 488 crore compared to Rs 51 crore last quarter.

The company is expected to further reduce costs through optimization and leveraging synergies from adjacency businesses of the group. The Ametha Integrated Unit is set to be commissioned by July 2023, which will increase Kiln capacity by 3.3 MTPA and 1 MTPA Grinding Unit. The company expects cement demand to grow in the coming quarters, given the sharp focus on infrastructure capex in the Budget

“During the quarter, the cement sector saw higher production & capacity utilisation on account of pickup in demand. The Company has maintained a healthy top line and leadership position in its core markets with a stronger Ambuja & ACC product portfolio. EBITDA margins expanded due to relentless focus on reduction in fuel and logistics costs by leveraging synergies with Group Companies. Business initiatives are expected to further bring down operating cost, reduce clinker factor, reduce logistics cost, improve sales of blended cement and expand EBITDA margin. We expect cement demand to further grow in coming quarters on the back of increased infrastructure activities given the sharp focus on infrastructure capex in this Budget” Said Mr. Ajay Kapur, CEO Ambuja Cements.