Ambuja Cements posts 68% decline in profit in 3QFY23

Ambuja Cements has posted a 68 per cent fall in standalone net profit in the 3QFY23 ended 30 September 2022. According to Mint, net profit for the three-month period came in at INR1380m (US$16.67m), compared to INR4410m in the same period last year.

Net sales advanced by 14 per cent from INR31,930m to INR36,310m. EBITDA in the 3QFY23 came in at INR3040m, significantly impacted by the rise in fuel costs. Volumes saw growth of 12 per cent, while logistics costs saw a notable reduction driven by various efficiency measures and network synergy, according to the company. 

“Cement industry has been facing significant margin pressure resulting from steep rise in global energy prices. However, recent cooling off in energy prices and post monsoon demand pick up appears like silver lining for coming quarters," said Ajay Kapur, CEO, Ambuja Cements. Ambuja is now part of the Adani Group and has embarked on what Mr Kapur calls 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 leadership position in cement industry, 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," added Mr Kapur in a regulatory filing.