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Ambuja Cements Posts Record Annualised Net Profits In 2023-24

03:20 PM May 01, 2024 IST | 8PM News Desk
ambuja cements posts record annualised net profits in 2023 24
Ambuja Cements Posts Record Annualised Net Profits In 2023-24

Ahmedabad : Gautam Adani-owned Ambuja Cements, the cement and building materials flagship of the diversified Adani Group, on Wednesday announced record-setting standalone and consolidated financial results for the fourth quarter and full year ended March 31.

Adani Group had acquired Ambuja Cements from Holcim in 2022, a move that seems to have turned the tide for the cement maker.

Ambuja Cements today reported a record annualised Profit After Tax or net profit of Rs 4,738 crore, up by 119 per cent on a yearly basis. During the fourth quarter, the net profits doubled to Rs 1,526 crore.

The Adani Group company attributed this strong performance to improved key performance indicator (KPIs) -- like volumes, efficiencies, cost, and capital expenditure.

The cement maker's revenue from operations rose 6.8 per cent to Rs 33,160 crore during 2023-24, earnings data showed. In the fourth quarter, it rose 11.6 per cent to Rs 8,894 crore.

Ajay Kapur, Whole Time Director and CEO of Ambuja Cements, said the "impressive financial performance during the year is a testament to the resilience and adaptability of our business model."

"It mirrors the Indian economy, which has emerged as a bright spot amidst a challenging global economic scenario. We remain steadfast in delivering long-term value and sustainable growth as we soar towards doubling capacities, investment in efficiency improvement, green power, and assured supplies of raw-material and fuel. We continue to play a vital role in the nation's growth story," added Kapur.

The company further said that the volume expansion along with improved operational parameters have resulted in growth in all business performances -- Profitability, Cash and Cash Equivalent and Net Worth.

Against backdrop of strong performance, the Board of Directors of Ambuja Cements recommended a dividend on equity shares at Rs 2.00 per share, which is consistent with last year on an annualised basis.

A dividend is a reward that companies often provide to their shareholders, though it is not mandatory, from a portion of their earnings.

The cement industry's outlook remains positive driven by pre-election spending, ongoing government emphasis on infrastructure development, and sustained real estate activity, the company asserted, adding Adani Cement will have advantage of accelerated growth, cost leadership, synergy with group businesses which will help to sustain market leadership.

In another update, Ambuja and ACC said they put together used more than 21 million tonnes of waste-derived resources in 2023-24, thus embracing circular economy.

Ambuja, with its subsidiaries ACC Ltd. and Sanghi Industries Ltd has taken the Adani Group's cement capacity to 78.9 MTPA with 18 integrated cement manufacturing plants and 19 cement grinding units across the country.

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