Ambuja Cement, part of the Adani Group, has reported revenue from operations of INR389,370m (US$4746m) in FY22-23. EBITDA came in at INR58,600m, with an EBITDA margin of 15 per cent, while profit before tax stood at INR37,290m. The company has changed its financial year end so these latest results cover 1 January 2022 to 31 March 2023, a total of 15 months, so are therefore not comparable with the figures for the 12 months ended 31 December 2021.
Profit after tax was reported as INR30,240m while earnings per share were INR13 over the same timeframe. Cement production over the period reached 67.6Mt, with a 62.28 per cent clinker factor. Cement sales volumes were 68Mt.
In terms of sustainability, the company reported a 34 per cent reduction in its net CO2/t of cementitious material, compared to base year 1990. Over the 15 months, the company used 0.88Mt of alternative fuels and raw materials. Staying with sustainability, the company has announced plans to expand capacity by 14Mta for the production of blended cement with a waste heat recovery system (WHRS) capacity of 42MW, along with the provision to utilise 50 per cent alternative fuels and raw materials, and increase the share of renewables. These projects will be executed over the next 24 months. Blended cements make up over 94 per cent of the company’s product portfolio and accounted for 88 per cent of total sales in FY22-23.
Ambuja says it is also focussed on margin expansion to become the most profitable cement manufacturer in the country, with the aim of realising cost savings of close to INR500/t on EBITDA across its operations.
“During the reporting period, we faced significant challenges, especially on the margin front. Although cement demand was largely buoyant, sharp increases in fuel and raw material prices, especially that of coal and gypsum, weighed on margins. While we actively sought alternative materials to reduce gypsum usage, the soaring price of coal remained a persistent challenge. Further, the series of interest rate hikes by the Reserve Bank of India to rein in inflation dampened sentiments to a certain extent,” said Ajay Kapur, chief executive officer, Ambuja Cement. “The challenges notwithstanding, Ambuja Cement reported a robust set of numbers, thanks to its continued focus on efficiencies, cost, growth strategies and synergies with the Adani Group.”
The India-based company currently operates 31.45Mta of cement production capacity across six integrated plants and eight grinding units.
