Ambuja Cement lost 0.56% to Rs 381.40 after the company reported 25.5% decline in standalone net profit to Rs 495 crore in Q1 CY2022 over Q1 CY2021.
Net sales rose by 7.7% to Rs 3,855 crore in Q1 CY2022 from Rs 3,579 crore in Q1 CY2021. The company's sales volumes grew by 4.2% YoY to 7.5 million tons and realizations improved by 4.1% YoY to Rs 5,149 per ton in Q1 CY2022.
Total expenses increased by 18.5% to Rs 3307.67 crore in Q1 CY2022 over Q1 CY2021. Freight cost per ton declined 5% year-on-year (YoY) supported by logistics efficiencies. Despite this gain, total operating cost per ton rose by 15%, due to increased fuel costs.
Profit before tax in Q1 CY2022 stood at Rs 654 crore, down by 26.2% from Rs 886 crore in Q1 CY2021.
EBITDA declined by 19.1% to Rs 790 crore in Q1 CY2022 from Rs 977 crore posted in Q1 CY2021. EBITDA margin was 20.5% in Q1 CY2022 as against 27.3% in Q1 CY2021.
The cement maker's consolidated net profit contracted by 30.4% to Rs 659 crore despite a 1.8% rise in net sales to Rs 7,754 in Q1 CY2022 over Q1 CY2021.
Neeraj Akhoury, CEO, Holcim India and MD & chief executive officer (CFO), Ambuja Cements said, "The India Strategy 2025 for both Ambuja and ACC is under execution. Under this plan we will realise industry leading position in cost excellence, asset optimization and sustainability.
Ambuja has recorded robust top line growth of 8%. Our market focused strategies are driving this performance.
The ongoing and new investments in the waste heat recovery systems approved by the board will support our efficiency initiatives and lead to the delivery of our sustainability goals."
The company's board has approved the appointment of Arun Kumar Anand as a non- executive non-independent director representing LIC on the board of Ambuja Cements w.e.f from 28 April 2022. Arun Kumar Anand is currently the executive director (investment operations) at LIC.
The board has also approved the appointment of Mario Gross as a non-executive non-independent director representing Holcim on the board of the company w.e.f 30 April 2022. Mario Gross is currently the chief procurement officer of the Holcim Group.
Ambuja Cements is one of the leading cement companies in India. It is part of the Holcim Group, a global leader in building materials and solutions and active in four business segments: cement, aggregates, ready-mix concrete and solutions & products.
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