Adani group’s Ambuja Cements reported its financial results for the April to June 2024 quarter on July 31. While the company’s profit surpassed market expectations, it fell short on revenue, margin, and EBITDA.
Financial Highlights:
– Profit: ₹571 crore
– Change: Declined by 11.5% from ₹645 crore in the same quarter last year
– Exceptional Gain: ₹13 crore
– Revenue: ₹4,516 crore
– Change: Decreased by 4.5% from ₹4,730 crore year-on-year
– EBITDA: ₹646.3 crore
– Change: Dropped by 32% from ₹946.4 crore last year
– EBITDA per Tonne: ₹807
– Margin: 14.3%
– Change: Shrunk from 20% in the same quarter last fiscal
– Sales Volume: 9.3 million tonnes
– Change: Slight increase from 9.1 million tonnes last year
Key Developments
– Acquisition: Ambuja Cements has entered into a binding agreement to acquire 100% of Penna Cement Industries Limited (PCIL). The deal, valued at ₹10,422 crore, involves a company with a total capacity of 14 MTPA. Of this, 10 MTPA is operational, while the rest is under construction in Andhra Pradesh, Telangana, and Rajasthan. The transaction is expected to close by the second quarter of FY25, pending execution of the Share Purchase Agreement and fulfillment of related conditions.
Summary Table
|
Metric |
Value |
|
Profit |
₹571 crore |
|
Profit Change |
-11.5% |
|
Revenue |
₹4,516 crore |
|
Revenue Change |
-4.5% |
|
EBITDA |
₹646.3 crore |
|
EBITDA Change |
-32% |
|
EBITDA per Tonne |
₹ 807 |
|
Margin |
14.3% |
|
Margin Change |
-5.7 percentage points |
|
Sales Volume |
9.3 million tonnes |
|
Sales Volume Change |
+0.2 million tonnes |
Ambuja Cements’ first quarter results highlight a drop in profit and margin, alongside a significant fall in EBITDA. However, the company’s profit beat market estimates, and the acquisition of PCIL marks a strategic move for future growth.
