Ambuja Cement Q2 Results FY2023, PAT at Rs. 138 crores

On 21st October 2022, Ambuja Cement announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

-  Net sales of Rs. 3,631 Crore, an increase of 14% compared to Rs. 3,193 Crore in the same quarter last year. 
- EBITDA for the quarter that ended September 2022 stood at Rs. 304 Crore. EBITDA is largely impacted by a steep rise in fuel cost and Partially mitigated by Coal supply from captive coal block and Reduction in logistics costs 
- EBITDA Margin stood at 8.4%
- Cash and Cash Equivalent at the end of the quarter is Rs. 3479 Crores  
- Profit After Tax stood at Rs. 138 Crores
- Cement sales volume growth of 12%

Business Highlights:

- Waste Heat Recovery System (WHRS) projects partially commissioned at Bhatapara, Rauri, and Marwar plants
- WHRS projects at Ambujanagar and Maratha plants are also progressing well
- Accelerating green products and solutions through increasing usage of Alternate Fuel & Raw Material (AFR) 

Commenting on the results,  Mr. Ajay Kapur, CEO of Ambuja Cements said: "Cement industry has been facing significant margin pressure resulting from steep rise in global energy prices. However, the recent cooling off in energy prices and post-monsoon demand pick-up appears like a silver lining for coming quarters. Ambuja has embarked upon a transformational journey to gain both scale and market leadership, with focused efforts on ramping up capacity, and margin expansion. By taking advantage of the scope and resources of the Adani Group, we aim to expand more quickly and with greater impact to gain a leadership position in the Cement industry. With the equity infusion by the promoter group in the company, the expansion program will gather pace in the coming time. Considering the promise, we made to double our manufacturing capacity over the next five years, our growth plans are ambitious. and this will be evident in 2023. While cost pressures have not gone away, our growth plans remain strong". 
 

Ambuja Cements share price dropped by 0.4%.