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Informist, Wednesday, Jan. 29, 2025

 

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--Ambuja Cements Oct-Dec consol net profit INR 21.15 bln
--Ambuja Cements Oct-Dec consol net profit INR 21.15 bln vs INR 8.24 bln
--Analysts saw Ambuja Cements Oct-Dec consol net profit INR 6.53 bln
--Ambuja Cements Oct-Dec consol revenue INR 93.29 bln vs INR 81.29 bln
--Ambuja Cements Apr-Dec consol PAT INR 32.11 bln vs INR 25.23 bln yr ago
--Ambuja Cements Apr-Dec consol revenue INR 251.56 bln vs INR 242.66 bln
--Ambuja Cements Oct-Dec fuel, power costs INR 20.82 bln vs INR 19.16 bln
--Ambuja Cements Oct-Dec raw material costs INR 14.31 bln vs INR 12.56 bln
--Ambuja Cements Oct-Dec volume highest ever at 16.5 mln tn, up 17% on year
--Ambuja Cements: Orient Cement acquisition expected to be closed in Jan-Mar
--Ambuja Cements: Merger of Penna Cement, Sanghi Ind under progress
--Ambuja Cements Oct-Dec consol operating EBITDA INR 17.1 bln vs INR 17.3 bln
--Ambuja Cements Oct-Dec consol operating EBITDA margin 18.4% vs 21.3%
--Ambuja Cements: FY25 demand seen growing 4-5%
--Ambuja Cements: Co will continue to grow at faster speed than industry
--Ambuja Cements:See better housing, infra demand vs tepid growth in Apr-Sept
--Ambuja Cements: Expect govt capex to reverse tepid growth seen in Apr-Sept

 

By Rajesh Gajra

 

NEW DELHI – The December quarter was good for Ambuja Cements Ltd.'s standalone volume, revenue, and net profit, which all recorded increases, but the operating profit and margins took a hit due to rise in raw material, and power and fuel costs. At a consolidated level, which includes the effect of the company's 50.05% holding in ACC Ltd., the sales volume of cement and clinker in the December quarter was the highest for the company.

 

Ambuja Cements' profit after tax jumped up 3.4 times on year to INR 17.58 billion in the December quarter, aided by a revenue growth of 3.6% on year to INR 50.43 billion and a jump in other income to INR 7.72 billion from 1.08 billion. The operating earnings before interest, tax, depreciation, and amortisation, or EBITDA, fell nearly 30% on year to INR 6.01 billion, and the operating EBITDA margin contracted sharply to 11.9% from 19.2%.

 

The company's sales volume of cement and clinker increased to 10.1 million tonnes in Oct-Dec from 8.2 million tonnes in year-ago quarter, while the consolidated sales volume increased to 16.5 million tonnes from 14.1 million tonnes. The consolidated sales volume, which included volumes of the recently acquired ACC, was the highest ever in a single quarter, the company said in a press release.

 

Ambuja Cements and ACC are the two major cement companies under the Adani group. While Adani group companies hold a 67.6% stake in Ambuja Cements, the major promoter shareholder stake of 50.1% in ACC is held by Ambuja Cements.

 

Ambuja Cements' consolidated net profit jumped 2.6 times on year to INR 21.15 billion in the December quarter. This was aided by three key metrics—a jump in revenue, a rise in other income, and an increase in government grants. The consolidated revenue from operations increased 4.5% on year to INR 84.15 billion. The other income of the company saw a substantial increase of nearly 7 times from the year-ago quarter to INR 13.52 billion. Government grants, including duty credits and refunds, jumped 11 times to INR 9.13 billion in Oct-Dec.

 

The company's consolidated operating EBITDA declined to INR 17.1 billion in the December quarter from INR 17.3 billion a year ago, and the operating EBITDA margin contracted to 18.4% from 21.3%. The consolidated profitability of the company was adversely affected by a notable rise in costs of three key inputs, and other expenses.

 

The raw material expenses, on a consolidated basis, increased significantly by 14% on year to INR 14.31 billion, while the power and fuel costs increased 8.7% to INR 20.82 billion, and freight and forwarding costs rose 9.3% to INR 20.44 billion. Other expenses jumped 49% on year to INR 13.23 billion. The 8.7% on-year increase in consolidated power and fuel costs was the highest in eight quarters, and the 49% rise in other expenses was the highest in 14 quarters.

 

The company said it expects cement demand to rise 4-5% in 2024-25 (Apr-Mar), notwithstanding the "tepid 1.5-2.0?ment demand growth" during the first half of the year. The company said it expected improved consumption demand in housing and infrastructure segments, and rise in government spending in Jan-Mar, after having registered good volume growth in the December quarter due to the same factors. The company claimed it would "continue to grow at a faster speed than the industry."

 

The company said that the acquisition of Orient Cement Ltd. is expected to be closed in Jan-Mar. Further, the merger of Penna Cement Industries Ltd. and Sanghi Industries Ltd. with Ambuja Cements' operations is "under progress", according to the company.

 

In Apr-Dec, the company's consolidated net profit was up 27% on year at INR 32.11 billion, but the revenue from operations declined slightly by 0.5% to INR 238.95 billion. At 1450 IST, shares of Ambuja Cements were 3% lower at INR 526.70.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

 

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