Home Business Adani Group-owned Ambuja Cements nearly halved profit in Q2

Adani Group-owned Ambuja Cements nearly halved profit in Q2

Ambuja Cements September quarter net profit down 94 per cent

New Delhi:

Ambuja Cements, now part of the Adani Group, on Friday reported a 94.24 per cent decline in its consolidated net profit at Rs 51.30 crore for the September quarter, mainly due to rising fuel prices and related inflationary impact. .

Ambuja Cements said in a BSE filing that the company had posted a net profit of Rs 890.67 crore in the year-ago quarter.

Its revenue from operations grew 7.46 per cent to Rs 7,143.17 crore as against Rs 6,647.13 crore in the corresponding quarter of the previous fiscal.

The total expenditure stood at Rs 7,179.90 crore, up 29.51 per cent from Rs 5,543.51 crore a year ago.

Ambuja Cements’ consolidated results include the financial performance of its step-down firm ACC Ltd, in which it holds about 51 per cent.

On a standalone basis, Ambuja Cements reported a 68.74 per cent decline in its net profit at Rs 137.89 crore from Rs 441.23 crore in the year-ago quarter.

Its standalone revenue from operations grew 13.37 per cent to Rs 3,670.40 crore from Rs 3,237.26 crore earlier.

Sales volume on a standalone basis increased by 12.33 per cent to 6.74 million tonnes per annum (MTPA) from 6 MTPA.

Its sales volume grew 5.63 per cent to 12.57 MTPA in the July-September period on a consolidated basis.

Ajay Kapoor, CEO, Ambuja Cements said, “The cement industry is facing significant margin pressure due to sharp rise in global energy prices. “However, the recent cooling off in energy prices and an uptick in post-monsoon demand appears to be a silver lining for the coming quarters. Ambuja has both scale and market leadership with efforts focused on increasing capacity and margins. has embarked on a transformational journey to achieve expansion,” he said.

On September 15, 2022, Endeavor Trade and Investment Ltd., a unit of the Adani family, acquired a stake in the Holcim Group and as a result, its board was reconstituted.

“The Company has terminated its agreement with Holcim Technology Limited for payment of technology and technical charges at the rate of 1 per cent of net sales with effect from 16 September 2022,” it said.

On October 18, Ambuja Cements allotted 47.74 crore warrants to Harmonia Trade and Investment Ltd, a unit of the Adani family, and received Rs 5,000.15 crore, which is equivalent to 25 per cent of the issued value of the warrants.

“By leveraging the scope and resources of the Adani Group, we aim to achieve a leadership position in the cement industry to expand more rapidly and with greater impact,” Kapoor said.

He said that the infusion of equity by the promoter group in the company will accelerate its expansion program in the times to come.

Kapoor said, “In keeping with our promise to double our manufacturing capacity in the next five years, our growth plans are ambitious, and this will be evident in 2023. Although the cost pressures have not gone away, our growth plans remain strong. have happened.”

Shares of Ambuja Cements closed at Rs 512.25 on the BSE on Friday, down 1.02 per cent from the previous close.

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