Ambuja Cement profit dips to Rs 645 crore for June quarter, meets estimates

Ambuja Cement’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in 38 percent higher on a year-on-year basis at Rs 948.8 crore. Ambuja Cement’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in 38 percent higher on a year-on-year basis at Rs 948.8 crore. Margin, meanwhile, rose to 20.1 percent for the June ended quarter.

Analysts had earlier said that margins would expand due to operating leverage, lower input costs like pet coke and coal prices, and reduced unitary costs resulting from the shutdown of Ambuja Cements' Himachal Pradesh unit in the previous quarter. With operations restarted, the current quarter was expected to benefit.

Ambuja Cement’s total sales volumes came in at 9.1 mt versus poll prediction of 8.5 mt. This 23 percent higher than the sales in the corresponding quarter last financial year.

Ajay Kapur, Whole Time Director and CEO, Ambuja Cements, said “Along with the strong demand for our premium cement products, growth was fueled by our various competences in operational excellence, supply chain management, and sales and marketing excellence.”

He highlighted that the firm's synergies with the Adani Group companies are lowering input costs, which is boosting EBITDA growth.

It must be noted that Ambuja Cement’s consolidated numbers also include ACC's figures as the two were acquired by Adani group last year.