The cement major posted 66.6% rise in standalone net profit to Rs 665 crore in Q1 March 2021 compared with Rs 399 crore registered in Q1 March 2020.Net sales during the quarter stood at Rs 3,579 crore compared to Rs 2,760 crore in the corresponding quarter of the previous year, resulting in a growth of 30%. Special products volume grew at 82% compared to the same period last year.
Total operating cost per ton declined by more than 5% led by operational efficiency programs in the plants along with logistics efficiencies such as direct dispatches, reduction in lead and increased home market sales. These initiatives have compensated for the impact of rising fuel and raw material costs, which continues to be a matter of attention for the coming quarters, the company said.
The cement maker's sales volume grew 24.48% to 7.17 million tonnes in Q1 March 2021 from 5.76 million tonnes posted in Q1 March 2020.
Profit before tax (PBT) surged 67% to Rs 886.1 crore in Q1 March 2021 from Rs 530.41 crore registered in Q1 March 2020. EBITDA grew by 62% to Rs 977 crore in Q1 March 2021 from Rs 603 crore recorded in Q1 March 2020. EBITDA margin improved by 540 basis points to 27.3% in Q1 March 2021 from 21.9% in Q1 March 2020.
Operating EBIT surged 83% to Rs 851 crore in Q4 FY21 over Q4 FY20. Operating EBIT margin rose 690 bps to 23.8% in Q4 FY21 from16.9% in Q4 FY20.
Neeraj Akhoury, CEO India for LafargeHolcim and MD & CEO of Ambuja Cements said, "Despite strong and continuing headwinds on input prices including coal, petcoke and diesel, we have made significant progress on efficiency improvement that has had a positive impact on cost evolution."
"India demand growth has been strong in the last quarter which has also helped the sales volume growth and commercial performance. Synergies under the master supply agreement with ACC continue to be strongly positive for both companies. Our ambitious growth plans to increase capacities in India are progressing well. Our upcoming facility in Marwar Mundwa, Rajasthan will enhance clinker capacity by 3 MTPA and help improve cement sales by 5 MTPA. We are progressing on our ambition to reach 50 million tons in the mid-term," he added.
In its outlook, Ambuja Cement stated: "India's GDP is estimated to grow at around 10.5% for the year April 2021 to March 2022. Though the second wave of pandemic warrants caution, the increased vaccination drive combined with the various stimulus proposals provided in the Union Budget 2021 and accommodative monetary and fiscal policies are expected to support economic recovery in the medium term. Rural demand is likely to remain resilient on a good projection for the agriculture sector. We would like to remain cautiously optimistic for the year."
Shares of Ambuja Cement rose 1.67% to Rs 314 on Thursday.
Ambuja Cements is one of the leading cement companies in India. It is part of the LafargeHolcim Group, the world leader in the building materials industry, and is committed to improving quality of life across more than 70 markets through its four business segments cement, ready-mix concrete, aggregates and solutions & products.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)