Q2FY22 Quarterly Result Announced for Ambuja Cements Ltd.
Highlights: Ambuja records operating EBIT growth of 4.9% in a quarter of exceptional fuel cost escalation Net sales up by 14% driven by volume growth Greenfield integrated plant at Marwar has commenced operations EBITDA growth at 3.2% for the quarter. Year to date EBITDA growth at 40.4% Intense cost headwinds led by global fuel inflation Becomes signatory to Science Based Targets initiative (SBTi); develops and validates 2030 carbon emission reduction plans. The company registered a volume growth of 5.9%. Net Sales during the quarter stood at Rs 3,193 Crore compared to Rs 2,802 Crore in the corresponding quarter of the previous year. Total operating cost per ton increased due to rising input costs notably in fuel. The operational efficiency programs at the plants along with logistics efficiencies partly mitigated the impact. EBITDA during the quarter at Rs 703 Crore showed a growth of 3.2% and Operating EBIT at Rs 577 Crore showed a growth of 4.9%. On the sustainability front, waste reused as a part of our commitment to the Circular Economy stands at 6.6 million tons for the period January to September 2021. After successful demonstration of the Bubble Curtain Technology to collect plastic waste at the Yamuna River (Mantola canal, Agra), implementation of similar projects are planned around our plants. EBITDA higher by 5.0% for the quarter Growth in Operating EBIT is 7.6% for the quarter Mr. Neeraj Akhoury, CEO, Holcim India and Managing Director & Chief Executive Officer, Ambuja Cements Limited said "During the quarter, sales revenue grew by 14%, EBITDA increased by 3.2% despite intense headwinds on fuel costs . We are taking all possible steps , under our flagship ICAN program, to further enhance our productivity to mitigate these headwinds. We will continue to retain focus on premium products which will support margins. I am pleased to announce the commencement of commercial production at our Marwar plant, which enhances Ambuja's clinker capacity by 3.0 MTPA and cement sales potential by 5.0 MTPA. Marwar plant has state-of-the- art technology and equipment to produce cement in a sustainable manner I am delighted to state that Ambuja has developed and validated its 2030 carbon emission reduction targets by the Science Based Targets initiative (SBTi) . The Company has signed the Business Ambition for 1.5° C pledge, joining the race to Zero campaign of the United Nations Framework Convention on Climate Change. With Science Based Targets developed and validated, Ambuja has now joined the group of global companies promoting an ambitious low carbon economy model for the industry." Result PDF26-10-2021