Ambuja Cements, part of the Adani Group, has agreed to acquire a majority stake in Sanghi Industries, reports Reuters News. According to sources close to the transaction, the deal is expected to be officially announced today.
Sanghi Industries is one of the leading cement producers in the Indian state of Gujarat and currently runs 6.1Mta of cement production capacity. The exact share of the stake and the value of the deal is not yet known.
In the quarter ended 30 June 2023, Ambuja Cements reported revenue from operations of INR47,297.1m (US$572.9m), up from INR39,982.6m in the same period a year earlier. Profit after tax fell from INR10,487.8m in the quarter ended 30 June 2022 to INR6448.8m in the same quarter a year later. Expenses over the same timeframe advanced from INR34,909.1m to INR40,526.6m, mainly driven by higher depreciation and amortisation expenses and cost of materials consumed. Earnings per share in the quarter ended 30 June 2023 came in at INR3.25, compared to INR2.53 in the previous quarter and INR5.28 in the same quarter in 2022.
