Ambuja Cements Ltd

Ambuja Cements announced that the 41st Annual General Meeting (AGM) of the company will be held on 26 June 2024.

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Revenue from operations was at Rs 8,893.99 crore in the March quarter, up 11.65% from Rs 7,965.98 crore posted in the same period last year.

Profit before exceptional items and tax grew by 22.32% year on year to Rs 1,389.57 crore in the quarter ended 31 March 2024. The company reported an exceptional loss of Rs 211.57 crore in Q4 FY24.

Ambuja Cements’ sales volume (cement and clinker) stood at 16.6 million tons during the quarter, up 17.73% YoY from 14.1 million tons reported in the corresponding quarter previous year.

Operating EBITDA jumped 37.12% to Rs 1,699 crore in Q4 FY24 from Rs 1,239 crore reported in Q4 FY23. EBITDA margin improved to 19.1% in Q4 FY24 as compared to 15.6% recorded in the similar quarter previous year.

EBITDA PMT has grown by Rs 149 (17% YoY) and margin expanded by 3.5 PP. A total of Rs 1,945 crore cash flows generated from the operations in Q4 and Rs 5,646 crore in FY24.

Net worth increased by Rs 8,022 crore during quarter and stood at Rs 50,846 crore, the company remained NIL debt & continued to maintain Crisil AAA (stable) / Crisil A1+ ratings, said the firm.

The cash & cash equivalent was at Rs 24,338 cr (including warrant money of Rs 8,339 cr received in April ‘24), highest amongst peers in the industry, enables accelerated growth in future, the company stated.

The cement maker added that the volume expansion along with improved operational parameters have resulted in growth in all business performances viz. profitability, cash & cash equivalent and net worth.

On full year basis, the cement manufacturer's net profit grew 38.45% to Rs 35,76.79 crore despite of 14.84% decline in revenue to Rs 33,159.64 crore in FY24 over FY23.

The company's sales volume (cement+ clinker) increased by 8.23% YoY to 59.2 million tons in FY24.

On its outlook, Ambuja Cements said, “The cement industry’s outlook remains positive driven by pre-election spending, ongoing government emphasis on infrastructure development, and sustained real estate activity. Adani Cement will have advantage of accelerated growth, cost leadership, synergy with group businesses which will help to sustain market leadership”.

Ajay Kapur, Whole Time Director & CEO, Ambuja Cements, said, “We remain steadfast in delivering long-term value and sustainable growth as we soar towards doubling capacities, investment in efficiency improvement, green power, assured supplies of raw-material and fuel. We continue to play a vital role in the nation’s growth story. Our growth blueprint implemented in the previous year towards capacity-building through organic and inorganic way, operational efficiency, and decarbonisation measures are yielding excellent results. “Cost optimisation remains core part of our strategy”.

Meanwhile, the company’s board has recommended dividend of Rs 2 per share for the financial year 2023-24, subject to approval of shareholders. The company has fixed record date on Friday, 14 June 2024 and the dividend, if declared, will be paid on or after 1 July 2024.

Ambuja Cements is a major cement producing company in India. The principal activity of the company is to manufacture and market cement and clinker for both domestic and export markets.

Shares of Ambuja Cements shed 0.06% to Rs 619.35 on the BSE.

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Ambuja Cements announced that the Board of Directors of the Company at its meeting held on 1 May 2024, inter alia, have recommended the final dividend of Rs 2 per equity Share (i.e. 100%) , subject to the approval of the shareholders.

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Net profit of Ambuja Cements rose 63.61% to Rs 1055.16 crore in the quarter ended March 2024 as against Rs 644.94 crore during the previous quarter ended March 2023. Sales rose 11.65% to Rs 8893.99 crore in the quarter ended March 2024 as against Rs 7965.98 crore during the previous quarter ended March 2023.

For the full year,net profit rose 38.45% to Rs 3576.79 crore in the year ended March 2024 as against Rs 2583.40 crore during the previous year ended March 2023. Sales declined 14.84% to Rs 33159.64 crore in the year ended March 2024 as against Rs 38937.03 crore during the previous year ended March 2023.

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Ambuja Cements will hold a meeting of the Board of Directors of the Company on 1 May 2024.

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Ambuja Cement has allotted 26,54,47,491 equity shares of the Company of face value of Rs. 2/- each, at a premium of Rs. 416.87/- per share, pursuant to the exercise and conversion of the remaining 265,447,491 convertible warrants (out of the 47,74,78,249 convertible warrants allotted) against receipt of the balance subscription amount of Rs. 314.1525/- per warrant (i.e. 75% of the issue price) to Harmonia Trade and Investment (Harmonia), a member of the promoter group.

With this conversion and allotment, entire 477,478,249 convertible warrants issued to Harmonia, stands converted into equity shares.

Post allotment of equity shares, the paid up equity share capital has increased to 2,463,123,478 equity shares of Rs 2 each. The promoter/ promoter group holding has increased to 70.29% from 66.70%.

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Ambuja Cements announced that the Adani family has fully subscribed to the warrants program in the Company by further infusing Rs 8,339 crore thereby infusing total amount of Rs 20,000 crore. Adani family have increased their stake in the Company by further 3.6% to 70.3%. This follows, the investment of Rs 5,000  crore on 18 October 2022 and Rs 6,661 crore on 28 March 2024, which was for part issuance of the shares.

The funds infusion will be instrumental to accomplish the capacity of 140 million tonnes per annum by 2028 by the cement vertical. Further, it shall also enable various strategic initiatives including debottlenecking capex to enhance operational performance, as well as bringing efficiencies across resources, supply chain. This shall also drive innovation and product enhancement through advanced technology integration for better service offerings to tap the growing requirements of the sector driven by the growth in the Indian economy.

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Ambuja Cements has signed definitive agreement to acquire My Home Group's 1.5 MTPA Cement Grinding Unit in Tuticorin, Tamil Nadu. The acquisition estimated at a total value of Rs. 413.75 crore through internal accruals will aid in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerela. The total cement capacity of Adani Group stands at 78.9 MTPA.

The asset spread across 61 acres of land, conveniently located near the Tuticorin Port with a long-term fly ash agreement will be value accretive from the beginning. Ambuja Cements will leverage the coastal footprint and state-of-the-art marine infrastructure and equipment, ensuring that the best quality products are delivered.

This acquisition provides access to the southern market customers with an opportunity to experience and instil their trust in one of the most iconic and trusted brands - Ambuja Cement. Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations.

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The acquisition estimated at a total value of Rs. 413.75 Crores through internal accruals will aid in enhancing the coastal footprint across southern markets of Tamil Nadu and Kerela.

The total cement capacity of Adani Group stands at 78.9 MTPA,” the company said in a statement.

The asset spread across 61 acres of land, conveniently located near the Tuticorin Port with a long-term fly ash agreement will be value accretive from the beginning. Ambuja Cements said that it will leverage the coastal footprint and state-of-the-art marine infrastructure and equipment, ensuring that the best quality products are delivered.

This acquisition provides access to the southern market customers. Furthermore, the limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant ensuring cost-efficient operations.

Ajay Kapur, CEO – Cement Business, Adani Group, said, We are glad to announce this acquisition, strengthening our foothold in the region and aligning perfectly with our commitment to delivering high-quality products and services to our customers.

In addition to the infrastructure and geographical advantages, Ambuja Cements will also inherit the existing dealer network and retain current employees, facilitating a smooth transition and enabling the rapid ramp-up of utilisation.

Ambuja Cements is engaged in the business to manufacture and market cement and cement related products.

The company’s consolidated net profit surged 89.5% to Rs 823.05 crore on 2.8% increased in revenue from operation to Rs 8,128.80 crore in Q3 FY24 over Q3 FY23.

The scrip was down 0.02% to currently trade at Rs 609.55 on the BSE.

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Ambuja Cements has appointed Manish Mistry as company secretary and compliance officer in place of Hitesh Marthak. The change is effective from 01 April 2024.

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