Ambuja Cements Q1 results: Profit jumps 31% to Rs 1,135 crore; stock drops

Ambuja Cements on Wednesday reported a 31.21 per cent year-on-year (YoY) rise in consolidated net profit at Rs 1,135 crore for the June quarter compared with Rs 865 crore in the same quarter last year. Net revenue for the quarter rose 8.46 per cent YoY to Rs 8,713 crore from Rs 8,033 crore in the corresponding quarter last year, the cement and building material company of the diversified Adani Group said.  

Ebitda jumped 55 per cent to Rs 1,930 crore while Ebitda margin expanded 6.7 per cent to 22.2 per cent from 15.5 per cent YoY. Ambuja Cements said a sustained volume growth was supported by increase in blended cement as well improvement in efficiency parameters. 

Ambuja, with its subsidiary ACC, has a capacity of 67.5 million tonnes with 14 integrated cement manufacturing plants and 16 cement grinding units across the country.  The cement maker said it maintained a strong market leadership all key markets, it said in a BSE filing. Following the development, the stock fell 1.17 per cent to Rs 456.20.

Whole Time Director & CEO Ajay Kapur said: “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 decarbonisation whilst creating opportunities, will redefine the cement industry landscape."

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Ambuja Cements said 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, the company said, India's status as the start-up capital of the world is drawing significant foreign investments, fuelled by its young population and technological advancements.

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