Operating EBIT Growth of 25 Per cent for the Full Year 2021 - Investment of Rs. 3500 Crore for Cement Expansion Plan of 7.0 million tons
Feb 18, 2022
Mumbai (Maharashtra) [India], February 18 (ANI/BusinessWire India): Full year 2021 -Net sales higher by 23 per cent, driven by volume growth and product mix -EBIT grows by 25 per cent. Quarter 4, 2021 -Net sales higher by 6 per cent -EBITDA for the quarter impacted by unprecedented increases of fuel prices.
Neeraj Akhoury, CEO, Holcim India and Managing Director & Chief Executive Officer, Ambuja Cements Limited said, "Ambuja delivered a strong full year performance with an EBIT growth of 25 per cent for the full year backed by strong performance in volume, product mix and operational efficiencies combined with significant acceleration in volumes under the Master Supply Agreement with ACC. During the year we delivered our highest ever sales volume supported by stabilization of operations at our new plant in Rajasthan. However, the December 2021 quarter was unfavorably impacted by very steep escalation in fuel prices coupled with subdued demand in multiple regions. The Board has approved in principle an investment of Rs. 3,500 Crore for a cement grinding expansion plan of potential 7.0 million tons across our existing grinding units at Sankrail and Farakka and at a greenfield location at Barh, in Bihar. This is supported by a 3.2 million tons brownfield clinker expansion at our existing integrated plant in Bhatapara, Chhattisgarh. On the ESG front, we are the first cement company globally to make it to the "A" list in the CDP Water Security 2021 which demonstrates our water stewardship. The positive changes made through our sustainability efforts positioned us 5th position in the Dow Jones Sustainability Index (DJSI) 2021 among construction materials companies globally."
Financial Performance for the year and quarter ended December 2021
Net Sales for the year stood at Rs. 13,794 Crore compared to Rs. 11,175 Crore in the previous year, registering a growth of 23 per cent year on year supported by strong growth in sales volumes and product mix.
Efficiencies delivered under our flagship ICAN program partly mitigated the impact of cost headwinds. However, total operating cost per ton increased by 3 per cent during the year.
Operating EBIT stood at Rs. 2,656 Crore compared to Rs. 2,125 Crore, recording a strong growth of 25 per cent year on year.
Net Sales during the quarter stood at Rs. 3,679 Crore compared to Rs. 3,468 Crore in the corresponding quarter of the previous year, registering a growth of 6% year on year. Operating EBIT stood at Rs. 398 Crore.
We are continuously working towards the development of our communities based on their needs in the areas of water resource management, skill as well as agri- livelihood development, women empowerment, community health and education for all.
New Expansion Project
The Board has approved in principle an investment of Rs. 3,500 Crore for a cement grinding expansion plan of potential 7.0 million tons across our existing grinding units at Sankrail and Farakka and at a greenfield location at Barh, in Bihar. This is supported by a 3.2 million tons brownfield clinker expansion at our existing integrated plant in Bhatapara, Chhattisgarh.
Dividend
The Board of Directors have recommended a dividend on equity shares of Rs. 6.30 per equity share.
Performance of ACC Limited, a Material Subsidiary
For the year, Net Sales increased to Rs. 15,814 Crore compared to Rs. 13,487 Crore registering a growth of 17 per cent. EBIT for the year 2021 improved by 40 per cent to Rs. 2,397 Crore. Free Cash Flow improved by 14 per cent during the year, supported by strong working capital management, with year-end cash balance in excess of Rs. 7,000 Cr.
Net Sales during the quarter increased to Rs. 4,137 Crore compared to Rs. 4,066 Crore last year. EBIT during the quarter stood at Rs. 396 Crore.
COVID-19 update
We continue to ensure strict adherence to the Union and State Government COVID-19 mitigation guidelines across all our plants and offices. We have focused on the vaccination of our employees, dependents and third-party workers. More than 98% are fully vaccinated now. We also encourage COVID-19 testing at periodic intervals to further strengthen COVID-19 mitigation related assurances around our operating sites.
Outlook
Economic activity continues to see improvement due to upbeat business confidence. The recently announced Union Budget focuses on growth led by substantial increase in the capex for the infrastructure sector. Cement demand growth is expected to remain positive backed by increased demand for housing combined with the government's thrust on infrastructure development.
This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article. (ANI/BusinessWire India)
