Ambuja Cements gained 1.07% to Rs 406.55 after the cement maker posted a 59.5% rise in standalone net profit to Rs 723 crore on a 55.8% increase in net sales to Rs 3,342 crore in Q2 2021 over Q2 2020.
The company's premium products volume grew at 69% compared to the same period last year. Total operating cost per ton saw a marginal decline, despite continuous headwinds faced on account of rising input costs. The operational efficiency programs in the plants along with logistics efficiencies partly mitigated the impact. Total operating cost spiked by 52.4% to Rs 2,411 crore in Q2 June 2021 over Q2 June 2020.Standalone EBITDA surged higher by 61.2% to Rs 960 crore in Q2 June 2021 from Rs 595 crore posted in Q2 June 2020. EBITDA margin improved to 28.7% in Q2 2021 from 27.8% in Q2 2020. Standalone profit before tax rose by 51% to Rs 966 crore in Q2 2021 over Q2 2020.
On the operational front, the cement maker's sales volume grew 51% to 6.33 million tonnes in Q2 June 2021 from 4.19 million tonnes posted in the same period last year.
Neeraj Akhoury, CEO of Ambuja Cements said, Ambuja registered a strong performance in the second Quarter of 2021 with 78% growth in operating EBIT and 310 basis points expansion in the EBIT margin. This performance resulted from strong growth in sales of premium products and successful execution of efficiency improvement programs which has partly been impacted by rising energy and raw material costs. Synergies under the master supply agreement have significantly benefited both Ambuja and ACC as we leverage our national footprint. Along with delivering robust financial performance, we remain committed to be best in class in Sustainability goals. Our Waste Heat Recovery Systems projects are progressing as per plan and along with reduction in emissions will also reduce our dependence on thermal energy. With support of our parent, Holcim, we are focused on conserving natural resources by utilizing alternative fuels and raw materials. We have used about 46 Lac tonnes of waste-derived resources in the first six months of 2021. Our increased focus on sustainability, digitisation and innovation is enabling us to reach closer to our global goal of net zero emissions.
In line with company's expansion plans, the Board has approved 1.5 million tonnes cement capacity expansion at the existing grinding unit at Ropar in Punjab. Ambuja also said the greenfield integrated plant at Marwar Mundwa will commence operations in the third quarter of 2021.
In its outlook, the company said, GDP for fiscal 2021-2022 is projected to grow at 9.5% and is expected to remain strong going forward. The measures announced by the Government including higher spending for infrastructure development will support revival of economic activity in general and lead to higher cement demand. With the operational efficiency programs and expansion projects, the company feels confident to capture the future growth.
Ambuja Cements is one of the leading cement companies in India. It is part of the LafargeHolcim Group, the world leader in the building materials industry.
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