Ambuja Cements Ltd. - Quarterly Analysis

Ambuja Cements has reported decent numbers for the first quarter of calendar year 2021 (Q1CY21)however declined numbers against last quarter .

The company posted 96% rise in its consolidated net profit attributed at Rs 1161.16 crore for the quarter ended June 2021 over Rs 592.51 crore for the same quarter in the previous year

The growth in bottom line was driven by strong operating numbers YoY , but sales volumes dropped during the quarter and operating cost increased due to increase in fuel price  .

EBITDA rises 63% YoY

Consolidated Earnings before interest, tax, depreciation and amortization (EBITDA) grew 63% per cent Y-o-Y to Rs 1827.36 crore. However decreased by 12%  against  last quarter. Besides, EBITDA Margin stood at 26% this quarter ; up by 2 %.YoY

Operating expenses increased by 46%

The total expenses of the company increased  by 46% to Rs 5150.88 crore for the quarter under review from Rs 3522 crore for the same quarter of last year. The was mainly on account of high Raw Material per tonne costs increased 32% for the quarter and Power and fuel expenses per tonne cost increased by 24%.

Performance drivers:

Increased, Innovative products like Cool Walls & Blockol Penetration of “Value Added Products”,

 ICAN - improvement in clinker factor Marwar Mundwa to commence operation in Q3 2021,

Scaling up of Data & Analytics Infrastructure for TIS, PACT & EDGE A,

Consistent improvement in Thermal Substitution Rate (TSR)