Ambuja Cements' growth plans and efficiency projects on course along with core emphasis on sustainability and innovation
Jul 20, 2022
Mumbai (Maharashtra) [India], July 20 (ANI/BusinessWire India): According to Neeraj Akhoury, CEO, Holcim India and Managing Director and Chief Executive Officer, Ambuja Cements Limited, "Ambuja has recorded robust volume growth of 15 per cent and top-line growth of 18 per cent. Ambuja Kawach, our green cement, demonstrated a growth of 22 per cent year on year.
The April to June 2022 quarter was impacted by rising fuel prices and related inflationary impacts. This was partly mitigated by improved efficiencies delivered under our 'I CAN' program which continues to deliver strong results. In addition, the Master Supply Agreement with ACC also led to strong performance on logistics costs.
Our expansion projects of 8.5 million tonnes of cement capacity at Ropar and Bhatapara are on track. The ongoing Waste Heat Recovery projects of ~ 53 MW are to be commissioned in the third quarter of 2022, which will support our efficiency initiatives and lead to the delivery of our sustainability goals.
Our sustainability campaign 'Change The Story' of Ambuja Cements and ACC, has been widely appreciated and won multiple awards. The campaign aimed to create awareness about sustainability and showcase technology-backed solutions that offer effective and measurable outcomes."
April - June Quarter 2022
- Waste Heat Recovery (WHRS) projects at Marwar, Darlaghat and Bhatapara plants on track, to be commissioned in Q3 2022; the next phase of WHRS projects progressing well
- Net sales growth of 18 per cent and volume growth of 15 per cent during the quarter compared to the previous year
- EBITDA at Rs 685 Crore, impacted by a significant rise in fuel prices which has been partly mitigated by efficiency initiatives under 'I CAN' program
Standalone Financial Performance for the quarter ended June 30, 2022
- Net Sales during the quarter increased to Rs 3,958 Crore compared to Rs 3,342 Crore in the corresponding quarter of the previous year, resulting in a growth of 18 per cent
- Total operating cost increased due to a significant rise in fuel costs
- EBITDA during the quarter is Rs 685 Crore and Operating EBIT is Rs 531 Crore
- Cash & Cash Equivalent stood at Rs 3,625 Crore as at June 30, 2022
Performance of ACC Limited, a Material Subsidiary
- Net Sales during the quarter increased by 15 per cent to Rs 4,393 Crore compared to Rs 3,810 Crore last year
- Profit after tax at Rs 227 Crore, 60 per cent lower vs previous year
- 'Parvat' journey with rigor on improvement of efficiency levers continues
- Cash & Cash Equivalent stood at Rs 4,517 Crore as of June 30, 2022
Outlook
The Reserve Bank of India, during its June meeting, noted that the domestic economic recovery is gaining strength. Investment activity is to be aided by improving capacity utilisation, the government's capex push, and strengthening bank credit; this bodes well for cement demand. Further, rural consumption should benefit from a normal monsoon owing to improvement in agricultural prospects.
Disclaimer
This press release may contain "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and may contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." For us, uncertainties may arise from fluctuations in material costs, availability of limestone, demand of cement and other factors affecting the demand including those of a political, economic, business, competitive or regulatory nature. Actual future results may differ substantially or materially than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
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