Ambuja Cements saw revenue climb to Rs 6,113 crore even as consolidated EBITDA margins contracted to 13.8% due to higher power costs and seasonal weather. Cement sales volumes remained stagnant at 16.5 million tonnes, but premium products accounted for 37% of trade sales. Meanwhile, shareholders approved the strategic amalgamation of ACC and Orient Cement into Ambuja Cements to establish the One Cement Platform by FY27.
Key points
Prior-year income tax reversals of Rs 1,697 crore created a tough comparison that drastic…: Prior-year income tax reversals of Rs 1,697 crore created a tough comparison that drastically lowered reported net profit.
Shareholders approved amalgamating ACC and Orient Cement with Ambuja Cements under the On…: Shareholders approved amalgamating ACC and Orient Cement with Ambuja Cements under the One Cement Platform initiative by FY27.
Long-term demand fundamentals stay positive thanks to ongoing national infrastructure inv…: Long-term demand fundamentals stay positive thanks to ongoing national infrastructure investments, rapid urbanization, and rural housing expansion.
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The company’s revenue from operations came in at Rs 6,113 crore for the September-ended quarter, up 10% from Rs 5,579 crore posted in the corresponding quarter of the previous financial year.
Ambuja Cements said net profit was lower due to an income tax provision reversal of Rs 1,697 crore in the same quarter last year.
Alongside Q2, the shareholders have approved the proposed amalgamation of ACC and Orient Cement with Ambuja Cements, advancing the company’s One Cement Platform initiative. The schemes remain subject to the requisite approvals and are expected to be completed in FY27.
On a consolidated basis, EBITDA margins witnessed a steep decline to 13.8% from 19.2% posted in the year-ago period, Ambuja Cements said in a regulatory filing on Thursday afternoon.
Cement sales volume stood at 16.5 million tonnes during the quarter, nearly identical to that in the year-ago period. Trade volumes grew 8.6% YoY, while the trade share increased by 6 percentage points to 74%. Premium products accounted for 37% of trade sales, up 2 percentage points.
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