Ambuja Cements Achieves Record Q2 Sales, EBITDA Surges 58% to INR 1,761 Crores
Ambuja Cements achieved record-breaking Q2 results with 20% year-on-year sales volume growth to 16.6 million tons. Revenue increased by 21% to INR 9,174.00 crores, EBITDA rose 58% to INR 1,761.00 crores, and profit after tax surged 364% to INR 2,302.00 crores, including a one-time tax write-back. The company reduced costs by INR 238.00 per metric ton, expanded capacity to 107 million tons, and plans to reach 155 million tons. Premium product share reached 35% of trade sales with 28% volume growth. CEO Vinod Bahety targets double-digit volume growth and aims to achieve an EBITDA of INR 1,500.00 per ton.
*this image is generated using AI for illustrative purposes only.
Ambuja Cements , a leading player in the Indian cement industry, has reported robust financial results for the second quarter, showcasing significant growth across key metrics. The company's performance was marked by record-breaking sales volumes and substantial improvements in profitability.
Record-Breaking Sales Volume
Ambuja Cements achieved its highest-ever quarterly sales volume of 16.6 million tons, representing a remarkable 20% year-on-year growth. This performance significantly outpaced the industry average growth of 4%, demonstrating the company's strong market position and effective sales strategies.
Financial Highlights
The company's financial performance for Q2 showed impressive gains:
| Metric | Q2 | Y-o-Y Change |
|---|---|---|
| Revenue | 9,174.00 | +21% |
| EBITDA | 1,761.00 | +58% |
| EBITDA per ton | 1,060.00 | +32% |
| Profit After Tax | 2,302.00 | +364% |
It's worth noting that the profit after tax includes a one-time tax write-back of INR 1,697.00 crores.
Cost Optimization and Efficiency Gains
Ambuja Cements achieved substantial cost reductions of INR 238.00 per metric ton year-on-year. This was primarily driven by lower kiln fuel costs, which reached INR 1.65 per 1,000 kilocalories. The company's focus on cost leadership and operational efficiency has contributed significantly to its improved profitability.
Capacity Expansion and Future Plans
The company has expanded its capacity to 107 million tons and announced debottlenecking initiatives to add 15 million tons at a low capex of INR 48.00 per ton. This strategic move has led to a revision of the target capacity from 140 to 155 million tons.
Premium Product Growth
Ambuja Cements reported strong growth in its premium product segment:
- Premium cement share reached 35% of total trade sales
- 28% growth in premium product volumes
This shift towards premium products indicates the company's successful brand positioning and market strategy.
Outlook and Future Initiatives
During the earnings call, CEO Vinod Bahety expressed optimism about the company's future performance:
- Targeting double-digit volume growth in the coming quarters
- Aiming to achieve an EBITDA of INR 1,500.00 per ton
- Planning to reduce total costs to INR 4,000.00 per ton, with further reductions to INR 3,800.00 and INR 3,650.00
- Increasing focus on digitalization and AI integration to improve operational efficiency
Ambuja Cements' strong performance in Q2, coupled with its strategic initiatives and expansion plans, positions the company well for continued growth in the Indian cement market. The management's focus on cost optimization, capacity expansion, and premium product growth suggests a positive outlook for the company in the coming years.
Historical Stock Returns for Ambuja Cements
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.08% | -0.64% | -1.72% | -1.12% | +14.79% | +116.16% |
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