Ambuja Records Operating EBIT Growth of 4.9 Percent in a Quarter of Exceptional Fuel Cost Escalation
Image CEO Neeraj Akhoury, Holcim India and Managing Director & Chief Executive Officer, Ambuja Cements Limited
Tuesday, October 26, 2021, Mumbai, Maharashtra, India:
- Net sales up by 14% driven by volume growth
- Greenfield integrated plant at Marwar has commenced operations
- EBITDA growth at 3.2% for the quarter. Year to date EBITDA growth at 40.4%
- Intense cost headwinds led by global fuel inflation
- Becomes signatory to Science Based Targets initiative (SBTi); develops and validates 2030 carbon emission reduction plans
Standalone unaudited financial results for the quarter and nine months ended 30th September 2021
|Sales Volume - Cement||Million Tonnes||6.00||5.67||19.50||15.62|
|Net Sales||Rs Crore||3,193||2,802||10,114||7,707|
|Total operating costs||Rs Crore||2,534||2,172||7,591||5,978|
|Operating EBIT||Rs Crore||577||551||2,258||1,483|
|Profit after tax||Rs Crore||441||441||1,829||1,293|
Mr. Neeraj Akhoury, CEO, Holcim India and Managing Director & Chief Executive Officer, Ambuja Cements Limited said:
“During the quarter, sales revenue grew by 14%, EBITDA increased by 3.2% despite intense headwinds on fuel costs. We are taking all possible steps, under our flagship ICAN program, to further enhance our productivity to mitigate these headwinds. We will continue to retain focus on premium products which will support margins.
I am pleased to announce the commencement of commercial production at our Marwar plant, which enhances Ambuja’s clinker capacity by 3.0 MTPA and cement sales potential by 5.0 MTPA. Marwar plant has state-of-the- art technology and equipment to produce cement in a sustainable manner.
I am delighted to state that Ambuja has developed and validated its 2030 carbon emission reduction targets by the Science Based Targets initiative (SBTi). The Company has signed the Business Ambition for 1.5° C pledge, joining the race to Zero campaign of the United Nations Framework Convention on Climate Change. With Science Based Targets developed and validated, Ambuja has now joined the group of global companies promoting an ambitious low carbon economy model for the industry.”
Financial performance for the quarter ended 30th September 2021
The company registered a volume growth of 5.9%. Net Sales during the quarter stood at Rs 3,193 Crore compared to Rs 2,802 Crore in the corresponding quarter of the previous year.
Total operating cost per ton increased due to rising input costs notably in fuel. The operational efficiency programs at the plants along with logistics efficiencies partly mitigated the impact.
EBITDA during the quarter at Rs 703 Crore showed a growth of 3.2% and Operating EBIT at Rs 577 Crore showed a growth of 4.9%.
On the sustainability front, waste reused as a part of our commitment to the Circular Economy stands at 6.6 million tons for the period January to September 2021. After successful demonstration of the Bubble Curtain Technology to collect plastic waste at the Yamuna River (Mantola canal, Agra), implementation of similar projects are planned around our plants.
Consolidated unaudited financial results for the quarter & nine months ended 30th September 2021
- EBITDA higher by 5.0% for the quarter
- Growth in Operating EBIT is 7.6% for the quarter
|Net Sales||Rs Crore||6,529||6,071||21,045||16,744|
|Operating EBIT||Rs Crore||1,140||1,060||4,260||2,785|
|Net income attributable to Ambuja Group||Rs Crore||666||622||2,490||1,633|
Performance of ACC Limited, a Material Subsidiary
Net Sales during the quarter increased to Rs 3,653 Crore, a growth of 5% vs previous year. EBIT for the quarter is higher by 10% at Rs 562 Crore. Strong operational improvement measures under project ‘Parvat’ partially mitigate cost inflation.
We continue to ensure strict adherence to Government COVID-19 mitigation guidelines across all our plants and offices. We have focused on the vaccination of our employees, dependents and third party workers with more than 80% fully vaccinated and 99% vaccinated with the first dose. We also encourage COVID-19 testing at periodic intervals to further strengthen COVID-19 mitigation related assurances around our operating sites.
Domestic activity in India is on an improving trend with reduction in COVID-19 cases and supported by increased pace of vaccinations. Government’s continued focus on capital expenditure and reforms to support growth augur well for domestic demand. Rural demand is expected to be buoyant backed by revival in agricultural activity. We remain confident that these will support cement demand in the medium term.
Ambuja Cements Limited is one of the leading cement companies in India. It is part of the Holcim Group, a global leader in building materials and solutions and active in four business segments: Cement, Aggregates, Ready-Mix Concrete and Solutions & Products. For more than three decades, Ambuja Cements has provided hassle-free home building solutions with its unique sustainable development projects and environment-friendly practices.