Ambuja Cement, now a part of Adani Cement, on Friday reported a 68% drop in standalone net profit at ₹138 crore for the quarter ended 30 September, 2022 (Q3FY23) versus ₹441 crore during the same period last year. Shares of Ambuja were trading at ₹513.70 apiece on the NSE, marginally down at 0.77% in afternoon deals.
Net sales of the company that follows the January-December financial year rose by 14% to ₹3,631 crore in Q3 2022 from ₹3,193 crore in Q3 2021.
EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization came at ₹304 crore, significantly impacted by rise in fuel cost.
The company witnessed a robust volume growth of 12% as compared to the same quarter last year. Reduction in logistic costs driven by unleashing network synergy and various other cost efficiency measures.
“Cement industry has been facing significant margin pressure resulting from steep rise in global energy prices. However, recent cooling off in energy prices and post monsoon demand pick up appears like silver lining for coming quarters," said Ajay Kapur, CEO Ambuja Cements.
Kapur further said that Ambuja has embarked upon a transformational journey to gain both scale and market leadership, with focused efforts on ramping up capacity, and margin expansion.
Gautam Adani now chairman of Ambuja Cements
After its takeover by the Adani Group, Gautam Adani is now the Chairman of the board of Ambuja Cements.
"By taking advantage of the scope and resources of the Adani Group, we aim to expand more quickly and with greater impact to gain leadership position in Cement industry, we made to double our manufacturing capacity over the next five years, our growth plans are ambitious and this will be evident in 2023. While cost pressures have not gone away, our growth plans remain strong," the CEO of Ambuja Cements said in a regulatory filing.
Ambuja Cements also owns 50.05% of ACC Ltd.
Last month, Adani Group announced the completion of the acquisition of Ambuja Cements and ACC for a total consideration of $6.5 billion, which includes the buyout of Swiss major Holcim's stake in the two firms and subsequent open offers to minority shareholders.
Days after the acquisition, Adani Group pledged its entire stake in Ambuja Cements and ACC Ltd worth $13 billion to the Hong Kong Branch of Deutsche Bank.
Adani acquired Ambuja Cement and ACC through Mauritius-based SPV Endeavour Trade and Investment Limited (ETIL), which is owned by Xcent Trade and Investment Ltd (XTIL).
