Ambuja Cements gains post exceptional second quarter results
The cement maker's premium products volume grew by 69% as compared to the same period last year
Shares of Ambuja Cements gained over 1% to Rs 408 as the company’s net profit increased by 59.5% to Rs 723 crore during the second quarter this year. The cement maker’s premium products volume grew by 69% as compared to the same period last year. However, its total operating cost saw a marginal decline despite continuous headwinds faced on account of rising input costs. The total operating cost spiked by 52.4% to Rs 2,411 crores in the second quarter this year as compared to the same quarter in the previous year.
Key Growth drivers
The cement maker’s premium products volume grew by 69% as compared to the same period last year. It’s standalone EBITDA went up by 61.2% to Rs 960 crore in the second quarter of June 2021 as compared to Rs 595 crore last year in the corresponding period. While its EBITDA margins improved by 0.9% to 28.7% as compared to the same quarter in the previous year.
“Along with delivering robust financial performance, we remain committed to be best in class in Sustainability goals. Our Waste Heat Recovery Systems projects are progressing as per plan and along with a reduction in emissions will also reduce our dependence on thermal energy. With the support of our parent, Holcim, we are focused on conserving natural resources by utilizing alternative fuels and raw materials”. said Neeraj Akhuroy, CEO of Ambuja Cements.
In its outlook, the company said that the “GDP for fiscal 2021-22 is projected to grow at 9.5% and is expected to remain strong going forward. The measures announced by the Government including higher spending for infrastructure development will support the revival of economic activity in general and lead to higher cement demand. With the operational efficiency programs and expansion projects, the company feels confident to capture the future growth.”
Going forward, the board has approved 1.5 million tonnes cement capacity expansion at the existing grinding unit at Ropar in Punjab. Its greenfield integrated plant at Marwar Mundwa will commence operations from the third quarter of 2021.