This Adani Group company's profit soared 268% on record sales
What's the story
Adani Group-owned Ambuja Cements has reported a whopping 268% jump in its consolidated net profit for the second quarter of FY 2023-24. The company's PAT stood at ₹1,766 crore, compared to ₹479 crore during the same period last year. The massive growth can be attributed to an all-time high volume of 16.6 million tons in Q2, a 20% year-on-year (YoY) increase.
Revenue increase
Revenue from operations up by 25% YoY
Ambuja Cements' revenue from operations in the second quarter stood at ₹9,130 crore, a 25% increase over ₹7,305 crore during the same period last year. The company's profit after tax (PAT) also witnessed a sequential rise of 111% against ₹835 crore in the previous quarter. However, the topline saw an 11% decline compared to ₹10,244 crore reported in the April-June quarter of FY26.
Financial stability
Company remains debt-free, net worth at ₹69,493 crore
Despite the fluctuations in revenue and profit, Ambuja Cements has managed to maintain its financial stability. The company's net worth stood at ₹69,493 crore, up by ₹3,057 crore during the quarter. It also continues to remain debt-free. The company received a CRISIL AAA (Stable) / CRISIL A1+ rating for its financial performance and stability.
Growth plans
Capacity target raised to 155 MTPA for FY28
Ambuja Cements has increased its FY28 target capacity by 15 MTPA, from the earlier 140 MTPA to now 155 MTPA. The additional capacity will be achieved by debottlenecking at a lower capex of $48/MT. The company is also installing 13 blenders at its plants over a period of 12 months to optimize product mix and increase the share of premium cement.
Sustainability efforts
New kiln line trial run starts at Bhatapara plant
Ambuja Cements has commissioned a 200MW solar power plant, taking its renewable energy capacity to 673MW. The company plans to increase this further to 900MW by the end of this year and 1,122MW by FY27. A trial run for a new kiln line with a capacity of 4 MTPA at Bhatapara in Chhattisgarh has also started.