Ambuja Cements rose 1.12% to Rs 383.70 after the company's consolidated net profit grew 13.23% to Rs 488 crore on 4.23% increase in net revenue to Rs 8,036 crore in Q4 CY22 over Q4 CY21.
Sequentially, the company's net profit grew 9 times while the revenue rose 11% in Q4 CY22.
The company's sales volume (cement+ clinker) was at 13.7 million tons in the quarter ended 31 December 2022 (up 7.03% QoQ and down 3.52% YoY). The sequential volume growth was supported by an increase in blended cement (clinker factor reduced from 60.1% to 59.5%), better route planning and higher operational synergies with its subsidiary, ACC. Market leadership strongly maintained across key markets, said the company.
During the quarter, EBITDA was at Rs 1,138 crore in Q4 CY22, up 161.01% QoQ and down 6.18% YoY. EBITDA margin stood at 14.6% in Q4 CY22 compared with 6.2% in Q3 CY22 and 16.2% in Q4 CY21.
The cement maker's cash and cash equivalent at the end of the quarter stood at Rs 9,454 crore.
Ajay Kapur, CEO Ambuja Cements, said, 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 sharp focus on infrastructure capex in this Budget.
He further added, The company remains debt free with a healthy position of cash & cash equivalents, which augurs very well for its journey to achieve scale and market leadership. Our focus to ramp up capacity in efficient way to ensure to be one of the lowest cost producers is on track. Ametha Integrated Unit is set to be commissioned by July 2023, which will increase Kiln capacity by 3.3 MTPA (EC approvals in hand for 2.75 MTPA) & 1 MTPA Grinding Unit. We are making good progress on our planned WHRS installation target.
On standalone basis, the cement major's net profit surged 45.85% to Rs 369 crore on 11.82% rise in net revenue to Rs 4,218 crore in Q4 CY22 over Q4 CY21.
The company's sales volume (cement+ clinker) grew by 6.94% YoY to 7.7 million tons.
EBITDA jumped 18.77% to Rs 715 crore during the quarter. EBITDA margin improved to 17.5% in Q4 CY22 as compared to 16.4% reported in the same period last year.
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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