Operating EBITDA Rs. 1,280 Cr, PAT Rs. 790 Cr
Operating Cost improved by 3% YoY at Rs. 4,437 PMT
Cash & Cash Equivalent at Rs. 18,299 Cr
EDITOR’S SYNOPSIS
- Q1 Operating EBITDA at Rs. 807 PMT, EBITDA margin of 15.4%.
- Quarterly EPS (diluted) at Rs. 2.65.
- Taken lead in ESG, Net Zero commitment by 2050, near-term targets validated by SBTi, first of its kind in the sector.
- Added 275 Mn MT limestone reserves in Q1 FY’25.
Ahmedabad, 31 July 2024: Ambuja Cements, the cement and building materials flagship of the diversified Adani Group, has announced sustainable results for Q1 FY’25, supported by cost leadership, improved efficiencies and growth.
Mr. Ajay Kapur, Whole Time Director & CEO, Ambuja Cements,said, “We have delivered another sustainable performance and our focus on innovation, digitisation, customer satisfaction and ESG is at the heart of our success. Our persistent performance sets the tone for the rest of the financial year, as we expand our footprint and capacities across new geographies. Our continued improvement on cost brings visibility of achieving the targeted cost reduction of Rs. 530 PMT by FY’28. With the Penna transaction expected to be closed by Q2 FY’25, our capacity will go to 89 MTPA and well on track to achieve our 140 MTPA plan by FY’28.”
Operational Highlights
|
Particulars (YoY) |
Q1 FY’25 |
|
Sales Volume (Clinker & Cement) |
Growth of 3% at 15.8 Mn T |
|
Kiln Fuel Cost |
Reduced by 17% (Rs. 2.08 to Rs. 1.73/’000 kCal) |
|
WHRS as a % of total power Consumption |
Increased by 3.6 pp to 15.1% |
- Group synergies continue to facilitate cost reduction journey, complemented by increasing footprint and capacities.
- Green power share at 18.4%, will improve to ~31 % by FY’25 and 60% by FY’28, this will contribute to reduction in overall cost of power by 33%, boosting EBITDA.
- Higher linkage coal volume and improved coal volume from Gare Palma (captive coal mine), has contributed to 17% reduction in Kiln fuel cost (Consolidated) from Rs. 2.08 to 1.73 per ’000 Kcal.
- Integration of recently acquired Tuticorin GU and Penna Cement (under closing) will help to further improve market share, overall profitability and RoCE.
Financial Highlights (Consolidated)
- Higher volume along with improved operational parameters resulted in growth in all business parameters.
- EBITDA PMT @ Rs. 807, EBITDA Margin of 15.4%,
- Net worth increased by Rs. 8,620 Cr during quarter and stands at Rs. 59,465 Cr, company remains debt free & continues to maintain Crisil AAA (stable) / Crisil A1+ ratings.
- The Cash & Cash Equivalent stands at Rs. 18,299 Cr enables accelerated growth in future.
- For Ambuja (consolidated), business level working capital stands at 30 days, reflecting agility in unblocking the funds in inventory and receivables.
Financial Performance for the quarter ended June 30, 2024
|
Particulars |
UoM |
Consolidated |
Standalone |
||
|
Q1 FY’25 |
Q1 FY’24 |
Q1 FY’25 |
Q1 FY’24 |
||
|
Sales Volume (Cement and Clinker) |
Mn T |
15.8 |
15.4 |
9.3 |
9.1 |
|
Revenue from Operations |
Rs. Cr |
8,311 |
8,713 |
4,516 |
4,730 |
|
Operating EBITDA & Margin |
Rs. Cr |
1,280 |
1,667 |
646 |
949 |
|
% |
15.4% |
19.1% |
14.3% |
20.1% |
|
|
Rs. PMT |
807 |
1,082 |
691 |
1,040 |
|
|
Other Income |
Rs. Cr |
355 |
263 |
420 |
189 |
|
Profit Before Tax |
Rs. Cr |
1,103 |
1,512 |
768 |
867 |
|
Profit After Tax |
Rs. Cr |
790 |
1,135 |
571 |
645 |
|
EPS – Diluted |
Rs. |
2.65 |
4.31 |
2.34 |
3.07 |
Progress on Ongoing Projects
Brownfield expansions at 14 sites for Clinker facility of 11 Mn T and Cement capacity of 23.4 Mn T is progressing well as per plan. Out of this 4 MTPA clinker line 3 at Bhatapara (Chhattisgarh) is expected by Q4 FY’25 and 6.4 MTPA grinding facility (Sankrail 2.4, Farakka 2.4 and Sindri 1.6 MTPA) is expected between Q3 & Q4 FY’25. In addition, pre-operative work for the 28 MTPA grinding facility and 22 MTPA Clinker facility is under progress.
ESG Updates
The Company has launched Digital BRSR (Business Responsibility and Sustainability Reporting) for financial year 2023-24 which is available on the Company’s website - https://www.ambujacement.com/ambuja4-BRSR/. The digital report enables quick overview and ease of information on Company’s ESG Performance in an interactive and interesting manner.
- With Green power projects on track, power cost will be optimised with 60% sourced from green power, EBITDA maximisation & reduction in CO2 footprint.
- Green cement @ >80% of product mix, exemplifying commitment to eco-friendly practices & CO2 footprint minimisation
- Ambuja and ACC created societal values for >4.6 million people by contributing to fields like healthcare, education, employment, and sustainable livelihoods.
- Achieved 11x water positivity (FY’24) for Ambuja Cement, establishing leadership in water governance.
- Reached an impressive 8x plastic negativity (FY’24) for Ambuja Cement through co-processing of plastic waste in cement kiln.
- Pledged to plant 8.3 million trees by 2030, (1.4 million trees planted till FY’24) in line with Adani Group's ambitious plan to plant 100 million trees.
- Ambuja and ACC put together used more than 21 million tonnes of waste derived resources in FY’24 embracing circular economy.
Branding
- Strategic placements of 'Mazbooti ki Misaal' advertisements aired during IPL 2024 and World Cup T20 reaching out to 250M+ audiences.
- Amplified digital presence on 15+ high traffic apps and websites to increase brand reach and awareness.
- Conducted 'Skill Building Workshops' across various domains for ~3700 contractors.
Outlook
Cement demand during FY’24 stood higher by 7 - 8% YoY at 422 MTPA and are likely to grow by 7 - 9 % in FY'25 to around 451 MTPA driven by strong correlation with GDP growth and rising demand from housing and infrastructure sectors. The Government aims to invest ~USD 3 trillion in infrastructure and housing development through the ongoing 'Housing for All' scheme, National Infrastructure plan, PM Gati Shakti National Master plan and others. An outlay of Rs. 11.11 lakh crores for Capital Expenditure has been allotted in Budget FY’25 which represents 3.4% of GDP. Phase IV of PMGSY will be launched to provide all-weather connectivity to 25,000 rural habitations. All these measures are expected to bring buoyancy to cement demand.
Achievements
- 'Best Customer Service' Award for the revolutionary AAA Certified Technology initiative at the 17th Customer Fest Show India 2024.
- Leadership Score in CDP Climate Assessment, showcasing leading position in environmental stewardship.
- Bhatapara and Roorkee plants won Apex India Green Leaf Platinum and Gold Awards for Environmental Excellence, respectively.
Gold and Silver Awards for water positivity and waste co-processing, respectively, at the SKOCH Awards 2024.