Ahmedabad, August 2nd, 2023: Ambuja Cements, the cement and building material company of the diversified Adani Group, today announced the financial results for the quarter ended June 30, 2023. The Company has showcased a growth quarter on quarter, reinforcing strength beyond the product, led by business excellence in operations, cost efficiencies and business synergies.
Operational Highlights:
- Sustained volume growth supported by increase in blended cement as well improvement in efficiency parameters. Strong market leadership maintained in all key markets.
- Kiln fuel cost reduced by 17% from Rs. 2.49 per ‘000 kCal to Rs. 2.07 per ’000 kCal. Fuel cost to be further optimised in future through mix optimisation.
- WHRS of 18 MW at Bhatapara, Suli and Rauri have been commissioned in current quarter. Additional 33 MW at Suli, Ametha and Maratha is expected in this year. With this total WHRS capacity will be at 121 MW by year end.
Financial Highlights:
- Net Revenue up by 9% YoY, at 8,713 Cr. EBITDA rose by 55%, at Rs. 1,930 Cr. and EBITDA margin expanded by 6.7% from 15.5% to 22.2%.
- Cost reduced by Rs. 348 PMT mainly driven by cost reduction journey and expected to further reduce given the various initiatives outlined.
- Operation excellence initiatives are aiding in reduction of operating cost, logistics cost and expansion of EBITDA margin.
Mr. Ajay Kapur, Whole Time Director & CEO, Ambuja Cements said, “We are delighted to report a strong performance in the first quarter of FY 2023-24, with a 9% increase in revenue, 55% increase in EBITDA and 31% increase in PAT compared to the previous year same quarter. Along with the strong demand for our premium cement products, growth was fueled by our various competences in operational excellence, supply chain management, and sales & marketing excellence. 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.
We believe that growth can lead to goodness that inspires us and drives us. When it comes to choosing a path towards growth, we choose the sustainable one. We are proud to be recognized as “India’s Most Trusted Cement Brand 2023” by TRA, among “India’s Top 50 Most Sustainable Companies” Cross Sector, and among “India’s Top 3 Most Sustainable Cement Companies” by BW Businessworld, as we are dedicated to providing the best for every stakeholder. We have also won numerous awards and accolades for our outstanding work in sustainability, customer service, safety, work culture, and community service. We thank our customers, partners, employees and shareholders for their trust and support.
We are transforming our surrounding communities and reducing our carbon footprint through strategic measures. These include lowering the clinker factor, diminishing energy intensity, implementing Waste Heat Recovery Systems, and augmenting renewable energy generation. Our long-term competitiveness remains robust, ensuring industry-leading profitability as we chase our ambitious growth goals. With a firm belief in our strategic approach, we are poised to continue our trajectory of outstanding performance as we are devoted to sustainable and responsible growth.”
Branding Initiatives:
Our sales and marketing strategies are aligned to drive growth and capture market opportunities. We launched a campaign focused on strengthening our positioning, evoking nostalgia by bringing back The Great Khali AD. We leveraged the India vs. Australia World Test Championship as our customers strongly associate with cricket. Our #strongHER campaign reached over 42 million viewers both on-ground and online thanks to our partnership with the Gujarat Giants in the Women’s Cricket Premier League. For the greater good of customers and partners, our Technical Services program is enabling an ecosystem of right and sustainable building techniques.
Financial Performance for the period ended June 30, 2023:
| Particulars | UoM | Consolidated | Standalone | ||||
| Quarter
Apr – Jun 2023 |
Quarter
Jan – Mar 2023 |
Quarter
Apr – Jun 2022 |
Quarter
Apr – Jun 2023 |
Quarter
Jan – Mar 2023 |
Quarter
Apr – Jun 2022 |
||
| Sales Volume (Cement and Clinker) | Million Tonnes | 15.4 | 14.1 | 14.1 | 9.1 | 8.1 | 7.4 |
| Net Revenue | Rs. Cr. | 8,713 | 7,966 | 8,033 | 4,730 | 4,256 | 3,998 |
| EBITDA | Rs. Cr. | 1,930 | 1,523 | 1,248 | 1,138 | 962 | 768* |
| EBITDA Margin | % | 22.2% | 19.1% | 15.5% | 24.1% | 22.6% | 19.2%* |
| PAT | Rs. Cr. | 1,135 | 763 | 865 | 645 | 502 | 499* |
* Excluding Dividend income Rs. 550 Cr.
Outlook
The foundation for long-term economic growth remains strong, supported by several key factors. One of these factors is the burgeoning middle class, which is expanding rapidly and 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. Additionally, India’s status as the start-up capital of the world is drawing significant foreign investments, fuelled by its young population and technological advancements.
ESG Highlights:
- Constant drive on increasing share of Waste Heat Recovery System, Alternative Fuel & Raw material and renewable power.
- Launched the state of the art Cement and Concrete Research facility in Navi Mumbai.
- ‘Geoclean’ is enabling circular economy through co-processing of waste materials
- Leadership in Water governance (8 times water positive), recognised by UN Global Compact Network India (UN-GCNI).
- Sustainable livelihood creation, women empowerment, investment in rural infrastructure and social inclusion for the upliftment of community are key priorities.
- 6 lakh people benefited through Corporate Social Responsibility initiatives.
Awards:
- Ambuja recognised as ‘India’s Most Trusted Cement Brand 2023’ by TRA Research
- Ambuja recognized amongst ‘India’s Top 50 Most Sustainable Companies’ Cross Sector by BW Businessworld
- Ambuja recognized amongst ‘India’s Top 3 Most Sustainable Companies’ in the Infrastructure and Engineering Sector’ by BW Businessworld
- Ambuja wins the ‘Digital Customer Experience Award 2023’ for Best Customer & Influencer Engagement.
- Ambuja felicitated with the ‘Customer Fest Award 2023’ for Most Innovative Loyalty Program.
- Ambuja honoured with the ‘ICC Social Impact Award 2022’ for West Bengal and Chhattisgarh.