Ambuja Cement Q1 net profit declines 38% YoY to Rs 645 cr

Ambuja Cement's consolidated EBITDA in Q1 reached Rs 1,930 crore, and the margins improved by 6.7 percent to 22.2 percent,

Ambuja Cement reported a net profit of Rs 645 crore on August 2 for the April-June quarter of FY24, lower by 38 percent reported a year ago.  The year-on-year decline in profit can be attributed to a higher base effect in the corresponding quarter a year ago on account of higher other income.

Its reported standalone revenue from operations increased 18.29 per cent to Rs 4,729.71 crore, as against Rs 3,998.26 crore earlier. "Cost reduced by Rs 348 PMT mainly driven by cost reduction journey and expected to further reduce given the various initiatives outlined," it said, adding "Operation excellence initiatives are aiding in reduction of operating cost, logistics cost and expansion of EBITDA margin."

Sales volume of Ambuja Cements on a standalone basis was up 22.97 per cent to 9.1 million tonnes (MT), from 7.4 MT. On a consolidated basis (including ACC), its sales volume was up 9.21 per cent to 15.4 MT in the April-June quarter. It was 14.1 MT in the corresponding quarter.

Ambuja Cements CEO Ajay Kapur said: "Our synergies with the Adani Group companies are lowering input costs, which is boosting EBITDA growth. Furthermore, our blueprint of improvements through Group synergies and CAPEX for efficiency and decarbonization whilst creating opportunities, will redefine the cement industry landscape," he said.

Over the outlook, the Adani Group firm said the foundation for long-term economic growth remains strong, supported by several key factors such as the growing middle class driving consumer spending. "India's domestic consumer market is experiencing rapid growth, while the country's industrial sector is also substantial, making it an attractive investment destination for multinational companies across various sectors such as manufacturing, infrastructure and services," it said.

Shares of Ambuja Cements on August 2 were trading at Rs 452.35 on BSE, down 2.00 per cent from the previous close. Shares of Ambuja Cements on Wednesday were trading at Rs 452.35 on BSE, down 2.00 per cent from the previous close.

Catch all market updates LIVE

According to an average of the standalone estimates from Motilal Oswal Financial Services Limited, Kotak Institutional Equities, ICICI Securities and HDFC Securities, the company was seen reporting a net profit of Rs 585 crore in Q1FY24, down 44 percent YoY. These brokerages had pegged revenue at Rs 4,280 crore in Q1FY24, up 7.18 percent YoY.