Ambuja Cements delivers stellar Q3 FY24 results


Ahmedabad, 31 January, 2024: Ambuja Cements, the cement and building materials flagship company of the diversified Adani Group, today announced robust financial results for Q3 FY’24, supported by continued operational excellence, business synergies, and cost leadership.

Ajay Kapur, Whole Time Director & CEO, Ambuja Cements Limited, said, “Our performance is a reflection of our resilience and focused efforts. Our pursuit of excellence continues to propel us towards setting new benchmarks in our steady growth. We remain steadfast in our mission to deliver value for all stakeholders by redefining the industry landscape.”

Operational Highlights

  • In December 2023, Ambuja Cements successfully completed the acquisition of Sanghi Industries having 1 MTPA capacity. This month, Ambuja’s subsidiary ACC completed the acquisition of the balance 55% stake in Asian Concretes and Cements Private Ltd (ACCPL) having 2.8 MTPA capacity. These acquisitions reinforce the Adani Group’s market leadership and takes its cement capacity to 77.4 MTPA, a jump of 15% from last year. Integration of these acquired companies is going on well.
  • There is an ongoing Cement capacity expansion of 20 MTPA at various Board has also approved additional Cement capacity expansion of 12 MTPA, which outlines a road map for 110 MTPA (80% of 140 MTPA capacity targeted by FY 2028)
  • Ongoing green power projects of @ capex of 10,000 crores will take green power share to

60% of expanded capacity while reducing operating costs.

  • Total Cost PMT reduced by 491 on consolidated basis. Additional savings are expected from ongoing investments on efficiency improvement projects.
  • Competitive basket of kiln fuel and AFR volume has helped to reduce fuel cost by 25%.
  • Long term contracts for key raw materials like fly ash and gypsum will help to secure the materials at optimised cost and curb volatility.
  • Improving synergies within cement business and with the Adani Group are helping to improve manpower productivity and optimise manpower
  • Micro market analysis has helped fix issues and improve the ground network, which will yield accelerated results in the coming quarters.
Particulars (YoY) Q3 FY’24 9M FY’24
Sales Volume (Clinker & Cement) Growth of 3% at 14.1 Mn T Growth of 4.9% at 42.6 Mn T
Kiln Fuel Cost Down by 25%

(Rs 2.45 to Rs 1.84 per ’000 kCal)

Down by 28%

(Rs 2.68 to Rs 1.92 per ’000 kCal)

WHRS as a % of total power Consumption Up by

6.5 pp to 12.7%

Up by

8.2 pp to 12.0%

Financial Highlights:

The business has seen notable progress in every financial matrix. EBITDA, EBITDA PMT and EBITDA margins have grown higher than revenue growth given sharp improvement in operating costs. EBITDA margin at 21.3% for Q3’24 is the highest in the last 10 quarters

A total of Rs. 562 crore incremental Cash & Cash Equivalent was generated in Q3’24. With this, the Cash & Cash Equivalent stands at Rs. 8,591 crore after factoring the outflows related to the acquisition of Sanghi, Asian Cements, as well as ICDs provided to Sanghi. This is highest amongst peer group and in the industry. 

In the 9 months ending Dec’23, Net Worth increased by Rs. 4,067 crore and stood at Rs. 42,824 crore, Crisil AAA (stable) / Crisil A1+ maintained. For Ambuja (standalone) business level Working Capital stands at 26 days, amongst the best in the peer group.

Financial Performance for the quarter and Nine Months ended December 31, 2023: For the Quarter ended Dec’23

Consolidated Standalone
Particulars UoM Q3 FY’24 Q3 FY’23 Q3 FY’24 Q3 FY’23
Sales Volume (Cement and Clinker) Mn T 14.1 13.7 8.2 7.7
Revenue from Operations Rs. Cr 8,129 7,907 4,440 4,129

Operating EBITDA & Margin

(Excl. Other Income)

Rs. Cr 1,732 1,021 851 639
% 21.3% 12.9% 19.2%* 15.5%
Rs PMT 1,225 744 1,043 829
Other Income Rs Cr 194 117 108 76
Profit Before Tax Rs. Cr 1,448 623 680 464
Profit After Tax Rs. Cr 1,090 488 514 369
EPS – Diluted Rs. 3.86 2.02 2.41 1.71