Ambuja Cements records PAT of Rs 441 crore in Q3 2021

The cement maker's standalone net profit remained flat at Rs 441 crore in Q3 2021 as compared with Q3 2020.

Net sales rose by 14% to Rs 3,193 crore in Q3 2021 from Rs 2,802 crore in Q3 2020. While the company's sales volumes grew by 9% to 6.2 million tons, realisations improved by 4% to Rs 5,154 per ton in Q3 2021.

Total operating costs rose by 16.7% YoY to Rs 2,534 crore during the period under review.

The company said that the 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% YoY and Operating EBIT at Rs 577 crore, showed a growth of 4.9% YoY.

The EBITDA Margin declined by 2.3 pp to 22% and the Operating EBIT margin contracted by 1.6 pp to 18.1% in Q3 2021 over Q3 2020.

Neeraj Akhoury, CEO, Holcim India and managing director & chief executive officer, Ambuja Cements, 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.

With respect to outlook, Ambuja Cements said that the 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. The company remains confident that these will support cement demand in the medium term.

Ambuja Cements 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.

The scrip gained 1.09% to end at Rs 380.20 on the BSE today.

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