Ambuja Cements on Tuesday reported 46% jump in net profit at Rs 369 crore for the quarter ending December 31, 2022 as against Rs 253 crore in the year-ago period.
The company’s revenue rose 11% to Rs 4,129 crore in Q3FY23 as against Rs 3,740 crore in Q3FY22.
“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,” said Ajay Kapur, CEO, Ambuja Cements.
On Tuesday, the company’s scrip on BSE closed nearly 2% higher at Rs 387.15.
The company, owned by the embattled Adani Group, saw its fuel costs fall and demand rise, and said its parent was considering engaging independent agencies to handle compliance.
The management of Adani Group entities is considering appointing independent firms to “look into the issues and compliance of applicable laws and regulations, related party transactions, internal controls etc,” Ambuja said.
Ambuja said it maximised low-cost domestic sources of coal as its own coal mine, Gare Palma, expanded and that it did not import any petcoke from the United States.
Ambuja’s EBITDA (earnings before interest, taxes, depreciation, and amortization) margins expanded from 6.2% to 14.6%, while kiln fuel cost fell 14% in the quarter.