Ambuja Cements Q4 reports 55.5% decline in net profit to Rs 431cr, revenue up 2.31% to Rs 7,625.28cr
Ambuja Cements Q4 results: Reports 55.5% decline in net profit to Rs 431 cr, revenue up 2.31% to Rs 7,625.28 cr
Full year 2021
● Net sales higher by 23%, driven by volume growthand product mix
● EBIT grows by 25%
Quarter 4, 2021
● Net sales higher by 6%
● EBITDA for the quarter impactedby unprecedented increases of fuel prices
Mr. Neeraj Akhoury, CEO, Holcim India and Managing Director & Chief Executive Officer, Ambuja CementsLimited said “Ambuja delivered a strong full year performance with an EBIT growth of 25% for the full year backed bystrong performance in volume, productmix and operational efficiencies combinedwith significant acceleration in volumes under the Master Supply Agreement with ACC. During the year we delivered our highest ever sales volume supported by stabilization of operations at our new plant in Rajasthan. However, the December 2021 quarter was unfavorably impacted by very steep escalation in fuel prices coupled with subdueddemand in multipleregions. The Board has approved in principle an investment of ₹ 3,500 Crore for a cement grinding expansion plan of potential 7.0 million tons across our existing grinding units at Sankrail and Farakka and at a greenfield location at Barh, in Bihar. This is supported by a 3.2 million tons brownfield clinkerexpansion at our existing integrated plant in Bhatapara, Chhattisgarh. On the ESG front, we are the first cement company globally to make it to the “A” list in the CDP Water Security2021 which demonstrates our water stewardship. The positive changes made through our sustainability efforts positioned us 5th position in the Dow Jones Sustainability Index (DJSI) 2021 among construction materialscompanies globally”.
Financial Performance for the year and quarterended December 2021
Net Salesfor the year stood at ₹ 13,794 Crorecompared to ₹ 11,175 Crore in the previous year, registering
a growthof 23% year on year supported by strong growthin sales volumesand product mix.
Efficiencies delivered under our flagship ICAN program partly mitigated the impact of cost headwinds.However, total operating cost per ton increasedby 3% during the year.
Operating EBIT stood at ₹ 2,656 Crorecompared to ₹ 2,125 Crore, recording a strong growthof 25% year
Net Sales during the quarter stood at ₹ 3,679 Crore compared to ₹ 3,468 Crore in the corresponding quarterof the previous year, registering a growth of 6% year on year.Operating EBIT stood at ₹ 398 Crore.
We are continuously working towards the development of our communities based on their needs in the areas of water resource management, skill as well as agri- livelihood development, women empowerment, community healthand education for all.
New Expansion Project
The Board has approved in principle an investment of ₹ 3,500 Crore for a cement grinding expansion plan of potential 7.0 million tons across our existing grinding units at Sankrail and Farakka and at a greenfield location at Barh, in Bihar. This is supported by a 3.2 million tons brownfield clinkerexpansion at our existing integrated plant in Bhatapara, Chhattisgarh.
The Board of Directorshave recommended a dividend on equity sharesof ₹ 6.30 per equity share.
Performance of ACC Limited,a Material Subsidiary
For the year, Net Sales increased to ₹ 15,814 Crore compared to ₹ 13,487 Crore registering a growth of 17%. EBIT for the year 2021 improved by 40% to ₹ 2,397 Crore. Free Cash Flow improved by 14% during the year, supported by strong workingcapital management, with year-end cash balance in excess of ₹ 7,000 Cr.
Net Sales duringthe quarter increased to ₹ 4,137 Crorecompared to ₹ 4,066 Crore last year. EBIT duringthe quarter stood at₹ 396 Crore.
We continue to ensure strict adherence to the Union and StateGovernment COVID-19 mitigation guidelines across all our plants and offices. We have focused on the vaccination of our employees, dependents and third-party workers. More than 98% are fully vaccinated now. We also encourage COVID-19 testing at periodic intervalsto further strengthen COVID-19 mitigation relatedassurances around our operating sites.
Economic activity continues to see improvement due to upbeat business confidence. The recently announcedUnion Budget focuses on growth led by substantial increase in the capex for the infrastructure sector. Cement demand growth is expected to remain positive backed by increased demand for housing combined with the government's thrust on infrastructure development.