Ambuja Cements Q2 Profit at Rs 473 Crore

Adani Group firm Ambuja Cements Ltd (ACL) on Monday reported a consolidated net profit of Rs 472.89 crore for the second quarter ended September 2024.

The company had logged a profit of Rs 987.24 crore in July-September FY24, according to a regulatory filing by ACL.

Revenue from operations was at Rs 7,516.11 crore during the September quarter. It was Rs 7.423.95 crore in the corresponding period last fiscal.

This is the "highest revenue in Q2 series in the last 5 years", which is driven by higher trade sales volume and premium products, said ACL in its earning statement.

Financial results of the quarter are not comparable with the year-ago period due to the acquisition of several companies, including Gujarat-based Sanghi Industries, Hyderabad-based Penna Industries, and Tamil Nadu-based MY Home Industries, whose results are included in it. Besides, its subsidiary ACC acquired Asian Concretes and Cements ltd.

"The consolidated financial results for the quarter and half year ended September 30, 2024 includes consolidated financial results of PCIL from the acquisition date. Accordingly, the results for the quarter and half year ended September 30, 2024 are not comparable," said ACL.

Total expenses in the quarter were at Rs 7.023.49 crore. Total income, which includes other income, was at Rs 7,890.14 crore in September quarter.

In the quarter, ACL's revenue from the cement business was at Rs 7,248.92 crore and Rs 295.24 crore from Ready Mix Concrete.

Consolidated results of Ambuja Cements include the financial performance of its step-down firm ACC Ltd in which it owns around 51 per cent stake along with Sanghi Industries, and Penna Industries.

"The Cash & Cash Equivalent stands at Rs 10,135 crore, which enables accelerated growth in future," it said.

On a standalone basis, Ambuja Cements reported a profit after tax of Rs 500.66 crore in the September quarter. It was Rs 643.84 crore in the year-ago quarter.

Standalone revenue from operations was at Rs 4,213.24 crore in the first quarter of FY25.

ACL's consolidated sales volume, which also includes ACC and other acquired assets, was at 14.2 million tonne (MT), which was up 8.4 per cent.

On a standalone basis, its sales volume of cement and clinker was up 14.47 per cent to 8.7 MT.

Commenting on results, Whole Time Director & CEO Ajay Kapur said ACL delivered another sustained performance aligned to its "growth blueprint and setting new benchmarks in efficiency".

"With our strong foothold across the nation, we are further expanding our footprint in new geographies in line with our vision. Post successful completion of the orient cement transaction, we are well poised to achieve 100+ MTPA capacity by this fiscal year-end," he said.

For the first half of the fiscal (April to September) ACL's revenue from operation was at Rs 15,827.5 crore and net profit was at Rs 1,256.07 crore.

It has the highest sales volume in H1 of 30.1 MT, in the last five years.

ACL has 89 MTPA capacity, in which it added 22 MTPA in the last 24 months through acquisition and organic growth. The company aims to have 140 MTPA by FY28.

"Capex growth from existing 89 MTPA to 140 MTPA will be met through internal accruals and operating cash flows," said ACL in its investor's presentation.

Moreover, with projects under advanced stage of completion, the capacity will go up to 100+ MTPA by the current fiscal year-end.

It is "well on track to achieve the targeted capacity of 140 MTPA by FY 28," it added.

Shares of Ambuja Cements Ltd on Monday were trading at Rs 578.60 apiece in afternoon trade at BSE, up 4.56 per cent from the previous close.