Improved efficiencies and the supply arrangement with ACC worked well for the cement giant in this quarter. Shares of Ambuja Cements ended at Rs 371.00, up by Rs 0.30, or 0.081 percent on the BSE.
Ambuja Cements Ltd, part of Swiss building material major Holcim Group (earlier LafargeHolcim), on July 19 reported a 44.9 percent year-on-year (YoY) jump in net profit at Rs 1,047.90 crore for the second quarter ended Jun 30, 2022.
The company follows the January-December financial year. In the corresponding quarter last year, the company posted a net profit of Rs 723.1 crore. CNBC-TV18 Polls had predicted a profit of Rs 650 crore for the quarter under review.
Total income stood at Rs 3,993.45 crore during the period under review, up 18.5 percent against Rs 3,371.2 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA declined 28.7 percent to Rs 684.5 crore in Q2 FY23 over Rs 959.7 crore in Q2 FY22. EBITDA margin stood at 17.14 percent in Q2 FY23 as compared to 17.14 percent in Q2 FY22. EBITDA is earnings before interest, tax, depreciation and amortisation.
The net sales during the quarter increased to Rs 3,958 crore compared to Rs 3,342 crore in the corresponding quarter of the previous year, resulting in a growth of 18 percent. The cash & cash equivalent stood at Rs 3,625 crore as of June 30, 2022.
Neeraj Akhoury, CEO of Holcim India and Managing Director and CEO, Ambuja Cements Ltd, said the company has recorded robust volume growth of 15 percent and top-line growth of 18 percent. Ambuja Kawach, its green cement business, saw a growth of 22 percent YoY.
"The April to June 2022 quarter was impacted by rising fuel prices and related inflationary impacts. This was partly mitigated by improved efficiencies delivered under our 'I CAN' programme which continues to deliver strong results. In addition, the master supply agreement with ACC also led to strong performance on logistics costs," Akhoury said.
Coming to ACC Ltd, the net sales during the quarter increased by 15 percent to Rs 4,393 crore compared to Rs 3,810 crore last year. The profit after tax at Rs 227 crore, 60 percent lower than the previous year.
"Our expansion projects of 8.5 million tonne of cement capacity at Ropar and Bhatapara are on track. The ongoing waste heat recovery projects of 53 MW are to be commissioned in the third quarter of 2022, which will support our efficiency initiatives and lead to the delivery of our sustainability goals," he added.
The results came after the close of the market hours.
(Edited by : Shoma Bhattacharjee)