Growth and efficiency projects on course along with core emphasis on sustainability and innovation
Growth plans and efficiency projects on course along with core emphasis on sustainability and innovation
April – June Quarter 2022
● Waste Heat Recovery (WHRS) projects at Marwar, Darlaghat and Bhatapara plants on track, to be commissioned in Q3 2022; next phase of WHRS projects progressing well
● Net sales growth of 18% and volume growth of 15% during the quarter compared to previous year
● EBITDA at ₹ 685 Crore, impacted by significant rise in fuel prices which has been partly mitigated by efficiency initiatives under ‘I CAN’ program
Mr. Neeraj Akhoury, CEO, Holcim India and Managing Director & Chief Executive Officer, Ambuja Cements Limited said:
Ambuja has recorded robust volume growth of 15% and top line growth of 18%. Ambuja Kawach, our green cement, demonstrated a growth of 22% year on year.
The April to June 2022 quarter was impacted by rising fuel prices and related inflationary impacts. This was partly mitigated by improved efficiencies delivered under our ‘I CAN’ program which continues to deliver strong results. In addition, the Master Supply Agreement with ACC also led to strong performance on logistics costs.
Our expansion projects of 8.5 million tonnes of cement capacity at Ropar and Bhatapara are on track. The ongoing Waste Heat Recovery projects of ~ 53 MW are to be commissioned in the third quarter of 2022, which will support our efficiency initiatives and lead to the delivery of our sustainability goals.
Our sustainability campaign ‘Change The Story’ of Ambuja Cements and ACC, has been widely appreciated and won multiple awards. The campaign aimed to create awareness about sustainability and showcase technology-backed solutions that offer effective and measurable outcomes.”
Standalone Financial performance for the quarter ended 30th June 2022
● Net Sales during the quarter increased to ₹ 3,958 Crore compared to ₹ 3,342 Crore in the corresponding quarter of the previous year, resulting in a growth of 18%
● Total operating cost increased due to significant rise in fuel costs
● EBITDA during the quarter is ₹ 685 Crore and Operating EBIT is ₹ 531 Crore
● Cash & Cash Equivalent stood at ₹ 3,625 Crore as at 30th June, 2022
Performance of ACC Limited, a Material Subsidiary
● Net Sales during the quarter increased by 15% to ₹ 4,393 Crore compared to ₹ 3,810 Crore last year
● Profit after tax at ₹ 227 Crore, 60% lower vs previous year
● ‘Parvat’ journey with rigor on improvement of efficiency levers continues
● Cash & Cash Equivalent stood at ₹ 4,517 Crore as at June 30, 2022
The Reserve Bank of India, during its June meeting, noted that the domestic economic recovery is gaining strength. Investment activity is to be aided by improving capacity utilisation, the government’s capex push, and strengthening bank credit; this bodes well for cement demand. Further, rural consumption should benefit from a normal monsoon owing to improvement in agricultural prospects.