Q1 standalone PAT increases by 10% and Operating EBITDA increases by 29%
“Our focus on reducing costs, improving productivity, and increasing capacity utilisation backed by strong attention to the retail segment and robust sales from our premium value-added products led to a strong quarter with 29% EBITDA growth,” said Ajay Kapur, Managing Director and CEO, Ambuja Cement.
Healthy top-line growth of 9% on a y-o-y basis attributable to improved realisations and sales growth of premium brands – Compocem and Roof Special.
During this quarter, the rise in global oil and energy prices drove up power & fuel costs and diesel prices which impacted freight costs. However, efficiencies improved.
Productivity improvements combined with cost-saving measures contributed to an Operating EBITDA increase of 29% compared to the corresponding quarter of the previous year.
Performance of Material Subsidiary – ACC Limited
Net Sales during the quarter went up by 14% to Rs 3,557 crore compared to Rs 3,108 crore for the same quarter last year. Operating EBITDA for the quarter registered a growth of 18% to Rs 492 Crore as against Rs 417 crore during the same quarter of the previous year.
Ambuja Cements Ltd. is one of the leading cement companies in India. It is part of the LafargeHolcim Group, the world leader in the building materials industry, with a presence in 80 countries, and a focus on cement, aggregate and concrete since 2006. For three decades, Ambuja Cements has provided hassle-free home building solutions with its unique sustainable development projects and environment-friendly practices.
Cement & Ready Mix Concrete sales volume grew 8% and 16% respectively during the quarter reflecting a stronger focus on premium products and consumer solutions.
Consolidated (Ambuja Cement and ACC Limited) Financial Results for the Quarter ended 31st March 2018
Q1 2018 Consolidated Net Sales up by 12%
Q1 2018 Consolidated Operating EBITDA up by 24%
Q1 2018 Consolidated PAT up by 30%
The combined annual cement capacity of both the companies stands at 63 million tonnes.
The company expects the economy to grow strongly in 2018 on the back of higher demand spurred by the government’s focus on infrastructure development (roads, highways, irrigation projects and railways), housing and increased rural spends. Additionally, we believe that the Government’s efforts towards creating jobs through spending on rural and labour intensive infrastructure, will support economic growth.
Source: Business Wire India.