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Cement giant Ambuja published its Q1 earnings wherein it reported a 26% YoY decline in consolidated profits. Profits for the quarter ended in June 2022 came in at Rs 865.44 crores as opposed to Rs 1,161.16 crores in the corresponding quarter last year.
However, the consolidated revenues of the company grew 15% to Rs 8,032.88 crores during the quarter. Other income grew 71% to Rs 132.97 crores. However, expenses grew on account 33% YoY as Power & Fuel expenses grew 63% to Rs 2,632.51 crores during the quarter. EPS declined 14.25% to Rs 3.79 per share.
HUL Q1 results are live, read more.
Sales volume during the quarter saw a robust growth of 15.11% as the company sold 7.39 million tonnes during the quarter. EBITDA margins saw a severe decline as they fell from 28.7% last year to 17.3% this year. EBITDA declined 29% to Rs 685 crores.
"Ambuja has recorded robust volume growth of 15%, and top-line growth of 18%. Ambuja Kawach, our green cement, demonstrated a growth of 22% year on year. The April to June 2022 quarter was impacted by rising fuel prices and related inflationary impacts. This was partly mitigated by improved efficiencies delivered under our 'I CAN' program which continues to deliver strong results. In addition, the Master Supply Agreement with ACC also led to strong performance on logistics costs." said Neeraj Akhoury, CEO of Holcim India & CEO and MD of Ambuja Cements.
These consolidated results included the results of its material subsidiary ACC Ltd. in which the company holds a 50.05% stake. Its profits declined 60% to Rs 227 crores while net sales increased 15% to Rs 4,393 crores.
"The Reserve Bank of India, during its June meeting, noted that the domestic economic recovery is gaining strength. Investment activity is to be aided by improving capacity utilization, the government's CAPEX push, and strengthening bank credit; this bodes well for cement demand. Further, rural consumption should benefit from a normal monsoon owing to improvement in agricultural prospects." Ambuja mentioned in its results.
The stock closed at Rs 367.85 per share, down 0.84%.
Article by Aman Agarwal.
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