Ambuja Cements Delivers, Highest Volume In Q2 Series In The Last 5 Years

Ahmedab, 28 October 2024: Ambuja Cements, most trusted legacy cement brand, one of India’s largest cement and building materials company and part of diversified ani Group today anunces stey financial performance for Q2 and first half-year(H1) of FY’25. This performance is supported by healthy volume growth, increasing scale of operations, value extraction of acquired assets, enhanced cost leership, improved operational efficiencies and group synergies.

Mr. Ajay Kapur, Whole Time Director & CEO, Ambuja Cements, said, “We are gl to deliver ar sustained performance aligned to our growth blueprint and setting new benchmarks in efficiency. We continue to focus on invation, digitisation, customer satisfaction and ESG as core elements of our business. With our strong foothold across nation, we are furr expanding our footprint in new geographies in-line with our vision. Post successful completion of orient cement transaction, we are well poised to achieve 100+ MTPA capacity by this fiscal year end.’

Operational Highlights

• Capex & Opex based initiatives across all operational areas viz.  volumes, efficiencies and cost coupled with Group synergies have shown healthy improvements reinforcing Ambuja’s cost leership. 
• Increased use of low cost Imported Petcoke and E-auction coal along with overall reduction in cost of fuel basket have contributed to 13% reduction in Kiln fuel cost (Consolidated) from Rs. 1.82 to Rs. 1.59 per ’000 Kcal. 
• rmal energy consumption improved by 3 kCal/Kg of Clinker at 758 kCal.

Financial Highlights (Consolidated)

• Highest revenue in Q2 series in last 5 years at Rs. 7,516 Cr, driven by higher tre sales volume (up by 1%) and premium product as % of tre sales at 26% (up by 3.3 pp YoY)
• Higher volume along with improved operational parameters resulted in growth in all business parameters. 
• EBITDA PMT @ Rs. 780, EBITDA Margin of 14.8%, 
• Net worth increased by Rs.450 Cr during quarter and stands at Rs. 59,916 Cr, company remains debt free & continues to maintain Crisil AAA (stable) / Crisil A1+ ratings. 
• Cash & Cash Equivalent stands at Rs. 10,135 Cr enables accelerated growth in future. 
• For Ambuja (consolidated), business level working capital stands at 33 days, reflecting agility in unblocking funds in inventory and receivables.

Financial Performance For Quarter Ended September 30, 2024:

Financial Performance for Half-Year ended September 30, 2024:

ESG Updates

• Ambuja becomes world’s first cement company to join Alliance for Industry Decarbonization (AFID), an initiative of IRENA (International Renewable Energy ncy)
• Ambuja Cement has been houred with prestigious Golden Peacock Award for excellence in ESG
• Ambuja Cements becomes a signatory to transitioning industrial cluster initiative of World Ecomic Forum
• Ambuja and ACC are committed to Net Zero by 2050. se are only 2 cement companies in India who are undergoing Net Zero target validation from SBTi
• Sustainability Reports for Ambuja and ACC are published and can be accessed at respective websites
• We have taken teworthy initiatives on renewable power, water conservation, circular ecomy, TSR, tree plantation & high share of green cement in product mix
• Ambuja and ACC created societal values for over 4.72 million people by contributing to fields like healthcare, education, employment, and sustainable livelihoods

Branding 

• Ambuja Cements and ACC launch new Brand Films houring ‘Real-life Giants’ and ‘Glorious Unity of India on 78th Independence Day .
• Ambuja Cements has created an invative content series titled #Giants toger to show case inspiring stories of loyal contractors across India

Digitalisation

• A state-of--art in-plant automation covering automated weighbridge operations, vehicle movement control and tracking, vehicle identification, intelligent order allocation, auto truck sequencing, and packing plant automation has been implemented across some plants
• ‘ani Cement Connect’ - Digital Sales platform allows dealers to place orders and check real-time outstanding payments, invoices, credit and debit tes
• ‘ani Rewards Connect’ - Digital Rewards platform – enables contractors, dealers, and retailers to check ir loyalty gains and redeem m using rewards catalogue
• Company has me significant vancements in its digitalization journey by modernising its network infrastructure and implementation of SD-WAN, resulting in faster order processing and quicker business transactions.

Outlook

Strong infrastructure demand and ongoing needs from housing and commercial sectors are anticipated to boost cement demand in H2 FY 2025. introduction of PMAY Urban Housing 2.0, with an allocation of ₹11 lakh crore, along with Government’s continued focus on infrastructure development as key to ecomic growth augurs well for cement sector. Strategic investments in ros, railways along with urban and commercial amenities, is poised to drive robust growth. We expect demand during FY 2025 to grow in range of 4-5%

Achievements

• Ambuja Cements is amongst 8 ani Group companies to be featured in TIME’s prestigious Best Companies 2024 list.
• 5-Star Rating awarded for RKBA Limestone Mine by Ministry of Mines and Indian Bureau of Mines.
• 5 plants received Platinum, and 3 received Gold Awards at 6th ICC National Occupational Health and Safety Conference & Awards.