Ambuja Cements Q4 Results: Q4 Operating EBITDA up 37% YoY at ₹1,699 Crore

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Synopsis:

The Adani Group prodigy in the cement sector, Ambuja Cements reported a Q4 EBITDA up 37% YoY at ₹1,699 Crore. This was the stand-out feature in Ambuja Cements Q4 results released on 1 May 2024. While releasing Q4 results, it appears that the Company, now a key part of India’s cement story, had records of growth over growth in its numbers with sales volumes and other financial metrics on the rise. TheRead more... Company reported its highest Clinker & Cement Sales over the last 20 quarters in Q4. Besides this, Q4 EBITDA PMT stood at ₹1,026/t, a rise of 17% YoY, and the quarterly EPS (diluted) was at ₹4.79, up by ₹1.71 YoY. In other positive growth results, the Company’s Revenue was up more than 12% YoY, while PAT was up more than 100% YoY. Read less

Introduction

The cement industry is growing in India, and the substantial infrastructure development in the country validates this. Under the significant banner of the Adani Group, Ambuja Cements is also growing and evolving rapidly. While the Company doesn’t have to prove itself as a cement sector leader, Ambuja Cements’ Q4 results only reinforce the fact that this is a serious and expanding contender in the Indian cement sector. With its successful completion of three acquisitions (Sanghi, Asian Cements & GU in Tuticorin), the Company’s cement capacity has surged by 11.4 MTPA taking total capacity to 78.9 MTPA. Volume expansion and improvements in the Company’s operations have resulted in key growth figures like EBITDA PMT growth at 17% YoY, with a Margin expanded by 3.5 PP. Significantly, in Q4, a total of ₹1,945 Crore Cash Flows were generated from the Company’s Operations, and ₹5,646 Crore for FY24. The Company’s Net Worth saw a rise of ₹8,022 Crore in Q4 and stands at ₹50,846 Crore with Ambuja Cements boasting Nil Debt.

Explore: Ambuja Cements Ltd Share Price

5 Key Financial Highlights

One of the flagship cement companies of the Adani Group, Ambuja Cements has delivered impressive Q4 results. Ambuja Cements Q4 results show resilience in operations and the favourable adaptability of its business model. Here are 5 important financial metrics that will open your eyes to the success of Ambuja Cement’s Q4: 

  • For Q4, the PAT was at ₹1,526 Crore relative to ₹763 Crore in the previous fiscal year’s same quarter, up this Q4 by +100% YoY against Q4 FY’23
  • EBITDA PMT growth was at ₹1,026 Crore up +17% YoY, relative to Q4 FY23 when this was at ₹877 Crore
  • EBITDA was up +37% YoY at ₹1,699 Crore, as against ₹1,239 Crore (Q4 FY23)
  • Revenue for Q4 was at ₹8,894 Crore, up by +12% YoY, relative to Q4 Revenue in FY23 that was at ₹7,966 Crore. 
  • Quarterly EPS (diluted) was at ₹4.79, up by ₹1.71 YoY

Additional Read129 Indian Companies to Release Q4 Results

Optimising Costs, Enhancing Operations

Ambuja Cements, along with ACC, is the stalwart of the cement business under the helm of the iconic Adani Group of Companies. The Company’s financial parameters in Q4 may be considered exceptional, but this is largely due to its robust operations and key ways to manage its cash flows and Revenue. The Company has witnessed major highs in Q4 and these are mentioned below: 

  • The Board has recommended a dividend on equity shares at ₹2.00 per share (100%)
  • In terms of Sales Volume (Clinker and Cement), Q4 witnessed a growth of 17.3% at 16.6 MnT, which is the highest-ever sales growth over the last 20 quarters  
  • Kiln Fuel Costs were reduced by 17% in Q4 ( ₹2.21 to  ₹1.84/’000 kCal)
  • WHRS as a % of total power Consumption rose by 4.5 pp to 13.5% 
  • For the quarter ended 31 March 2024, Ambuja Cements results also included relevant information about its business statistics, including a Cement Capacity of 78.9 MTPA, with 18 integrated Cement Units
  • In Ambuja Cements' Q4 results, the Company also revealed that it had added 142 Mn MT new limestone reserves (secured in Q4) with its total reserves amounting to 7.8 Bn MT at a premium of less than 3%

Additional Read: Quarterly Results

Key Financial Metrics - Consolidated Q4 (FY2023-24) Financial Results (Income Statement) of Ambuja Cements (in ₹ Crore)

Metrics

UoM

Q4 FY24

Q3 FY24

Q4 FY23

Revenue from Operations

₹ Crore

8,894

8,129

7,966

EBITDA (Excl. Other Income

₹ Crore

1,699

1,732

1,239

EBITDA %

%

19.1%

21.3%

15.6%

EBITDA PMT

₹/Ton

1,026

1,225

877

Other Income

₹ Crore

233

194

284

Profit Before Tax

₹ Crore

1,601

1,448

989

Profit After Tax

₹ Crore

1,526

1,090

763

Diluted EPS ₹

4.79

3.86

3.08

Ambuja Cements Q4 Results - The Success Story Continues

Building on its already robust framework, Ambuja Cements is expanding its horizons with an optimistic taste of things to come. Since the Adani Group acquired ACC and Ambuja Cements, these flagship companies have proved worthy additions to the conglomerate quarter after quarter. With the Company’s Net Worth at an all-time high of ₹59,185 Crore and Cash & Cash Equivalents at an all-time high of ₹24,338 Crore, the Company is on track of expansion to achieve 140 MTPA by 2028, and 20 MTPA under execution, going through during FY25. 

Additional Read: Annual Results

Conclusion

Ambuja Cements Q4 results are more than satisfactory for a company that has only grown since it was acquired by the Adani Group. With progress in the future on its roster, the Company boasts a higher share of coal from captive mines and the opportunity to purchase imported pet coke which will lead to lower fuel costs and improve revenues. Additionally, with the new Sea Logistics infrastructure and its own BCFC rakes, the cost of logistics will further decrease and boost Company revenues.

Results for the Fourth Quarter and Full Year Ended March 31, 2024

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Frequently Asked Questions

Based on the Q4 results of Ambuja Cements, what does the future foretell for the Company?

Answer Field

In India, the cement industry’s outlook is largely positive led by pre-election spending, continuing government emphasis on infrastructure development, and sustained activity in the real estate sector. Ambuja Cement sees itself as leveraging opportunities for accelerated growth, synergy with segment business operations, and cost leadership. All these factors will aid the Company in maintaining its leadership position in the industry.

What was the most significant result in Ambuja Cements Q4 result report?

Answer Field

The most significant result in Ambuja Cements Q4 result report was the Q4 Operating EBITDA, up by 37% YoY at ₹1,699 Crore. Additionally, the Company has delivered its highest-ever annualised PAT at ₹4,738 Crore, up by 119% YoY.

Were the Q4 results of Ambuja Cements good?

Answer Field

With its Q4 results, Ambuja Cements remains the market leader in India’s cement industry with high growth figures (both quarterly and annually for FY24). Furthermore, its rapid execution of expansion and cost-cutting make it one of India’s flagship cement companies to keep your eye on in the months to come.

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