When compared to the same quarter a year prior, the business reported a net profit of 856 crore. The combined net at Ambuja Cements for the March quarter decreases by 10.86% to 763 crore.
Ambuja Cements, the building materials division of the Adani Group, reported a 10.86% decline in consolidated net profit at 763 crores for the quarter ended in March, falling short of analysts’ expectations of 799 crores.
When compared to the same quarter a year prior, the business reported a net profit of 856 crore.
Consolidated net revenue for Ambuja Cements was $7,966 crore, a slight increase from the $7,900 crore reported during the same time last year. According to a forecast by Bloomberg analysts, the company will have a combined net profit of $799 billion on revenues of $5,104 billion.
Our emphasis on cost-saving strategies and operational efficiency led to increased profitability. We were able to continue on our upward growth trend and further solidify our market position. We anticipate elevated demand and solid volumes to continue in the upcoming quarters as construction activity increases across all of our markets, Ambuja Cements‘ full-time director & CEO Ajay Kapur said.
Ambuja Cements reported a standalone net profit of 502 crores for the quarter, up from the previous year’s figure of 494 crores, while standalone sales increased to 4,256 crores from 3,927 crores. The board of directors for the corporation has suggested a dividend of $2.50 per share (125%).
Despite the negative effects on volumes caused by the 50-day suspension of operations at plants in Himachal Pradesh, revenue increased. According to the statement, the cost decreased by $228 per metric tonne and is anticipated to decrease even more as a result of cost optimization and the use of synergies from the group’s adjacent businesses.
Business excellence activities are anticipated to further lower operating costs, lower clinker factor, lower logistics costs, improve blended cement sales, and increase EBITDA margin, according to the statement.
On a consolidated basis, Ambuja Cements reported a net profit for FY23 of 3,024 crore on sales of 38,937 crores.
The cement manufacturer used to operate on a January-December fiscal year, but recently modified it to finish on March 31 instead of December 31. As a result, FY23 was prolonged by three months to March 31, 2023 (a total of 15 months), hence the numbers are not comparable to those from the prior fiscal year.
According to Ambuja Cements, the government’s increased investment in infrastructure development, particularly roads, railroads, affordable housing, and other programs, is encouraging. The government’s “pro-active” initiatives and will create greater chances for the cement industry.
Shares of Ambuja Cements closed Tuesday’s trading session on the BSE down 0.48% at 394.40.
