Ambuja Cements's Q4 profit soars 64% to ₹1,055 crore
Ambuja Cements, owned by Gautam Adani, has reported a significant 64% increase in its consolidated net profit for the March quarter, amounting to ₹1,055 crore. This surge is primarily attributed to reduced input costs and marks a substantial growth from the previous year's profit of ₹645 crore. The company also witnessed a 12% growth in operational revenue, totaling ₹8,894 crore. The board of Ambuja Cements has recommended a dividend of ₹2 per share.
Ambuja Cements reports reduced kiln fuel cost, positive outlook
Ambuja Cements reported a 17% decrease in kiln fuel cost in the quarter. The company stated, "The cement industry's outlook remains positive driven by pre-election spending, ongoing government emphasis on infrastructure development, and sustained real estate activity." Despite this optimistic view, cement prices across India experienced a significant drop due to increased competition and supply.
Factors affecting cement prices and company's future plans
According to analytics firm CRISIL, cement prices fell by ₹40-45 per bag over five months from November 2023 to March 2024 due to factors such as increasing temperatures, general elections, labor shortages, liquidity problems and challenges related to sand and water availability. Despite these challenges, Ambuja Cements's CEO Ajay Kapur stated, "We remain steadfast in delivering long-term value and sustainable growth as we soar toward doubling capacities, investment in efficiency improvement, green power, assured supplies of raw-material and fuel."
Adani family infuses additional funds, increases stake
In April, the Adani family infused an additional ₹8,339 crore into Ambuja Cements under the warrants program. This move increased their stake in the company to 70.3% and total investment to ₹20,000 crore. The company stated that this fund infusion will be crucial for achieving the capacity of 140 million tons per annum by 2028.
