Ambuja Cements : announces Financial Results for the quarter and half year ended 30th June 2022

Media Release

19th July 2022

Growth plans and efficiency projects on course along with core emphasis on

sustainability and innovation

April - June Quarter 2022

• Waste Heat Recovery (WHRS) projects at Marwar, Darlaghat and Bhatapara plants on track, to be commissioned in Q3 2022; next phase of WHRS projects progressing well
• Net sales growth of 18% and volume growth of 15% during the quarter compared to previous year
• EBITDA at ₹ 685 Crore, impacted by significant rise in fuel prices which has been partly mitigated by efficiency initiatives under 'I CAN' program

Standalone Unaudited Financial Results for the quarter and half year ended 30th June 2022

			Quarter		Quarter		Half Year		Half Year
Particulars	UoM		Apr-Jun		Apr-Jun		Jan-Jun		Jan-Jun
			2022		2021		2022		2021
Sales Volume - Cement + Clinker	Million Tonnes	7.39	6.42	14.89	13.66
Net Sales	₹ Crore	3,958	3,342	7,813	6,921
Total operating costs	₹ Crore	3,309	2,411	6,444	5,056
EBITDA	₹ Crore	685	960	1,475	1,936
EBITDA Margin	%	17.3%	28.7%	18.9%	28.0%
Operating EBIT	₹ Crore	531	829	1,170	1,681
Operating EBIT Margin	%	13.4%	24.8%	15.0%	24.3%
Profit before tax	₹ Crore	1,138	967	1,792	1,853
Profit after Tax	₹ Crore	1,048	723	1,543	1,388

Mr. Neeraj Akhoury, CEO, Holcim India and Managing Director & Chief Executive Officer, Ambuja Cements Limited said:

Ambuja has recorded robust volume growth of 15% and top line growth of 18%. Ambuja Kawach, our green cement, demonstrated a growth of 22% year on year.

The April to June 2022 quarter was impacted by rising fuel prices and related inflationary impacts. This was partly mitigated by improved efficiencies delivered under our 'I CAN' program which continues to deliver strong results. In addition, the Master Supply Agreement with ACC also led to strong performance on logistics costs.

Our expansion projects of 8.5 million tonnes of cement capacity at Ropar and Bhatapara are on track. The ongoing Waste Heat Recovery projects of ~ 53 MW are to be commissioned in the third quarter of 2022, which will support our efficiency initiatives and lead to the delivery of our sustainability goals.

Our sustainability campaign 'Change The Story' of Ambuja Cements and ACC, has been widely appreciated and won multiple awards. The campaign aimed to create awareness about sustainability and showcase technology-backed solutions that offer effective and measurable outcomes."

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Ambuja Cements Limited is one of the leading cement companies in India. It is part of the Holcim Group, a global leader in building materials and solutions. For more than three decades, Ambuja Cements has provided hassle-free home building solutions with its unique sustainable development projects and environment-friendly practices.

Standalone Financial performance for the quarter ended 30th June 2022

• Net Sales during the quarter increased to ₹ 3,958 Crore compared to ₹ 3,342 Crore in the corresponding quarter of the previous year, resulting in a growth of 18%
• Total operating cost increased due to significant rise in fuel costs
• EBITDA during the quarter is ₹ 685 Crore and Operating EBIT is ₹ 531 Crore
• Cash & Cash Equivalent stood at ₹ 3,625 Crore as at 30th June, 2022

Consolidated unaudited financial results for the quarter and half year ended 30thJune 2022

Consolidated	UoM		Apr-Jun			Apr-Jun				Jan-Jun			Jan-Jun
	2022			2021				2022			2021
Net Sales	₹ Crore	7,943		6,899			15,697		14,516
EBITDA	₹ Crore	1,115		1,827			2,539		3,666
EBITDA Margin	%	14.0%		26.5%		#	16.2%		25.3%
Operating EBIT	₹ Crore	796		1,551		1,915		3,120
								#
Operating EBIT Margin	%	10.0%		22.5%		12.2%		21.5%
Net income attributable to Ambuja Group	₹ Crore	752		877			1,411		1,824

Performance of ACC Limited, a Material Subsidiary

• Net Sales during the quarter increased by 15% to ₹ 4,393 Crore compared to ₹ 3,810 Crore last year
• Profit after tax at ₹ 227 Crore, 60% lower vs previous year
• 'Parvat' journey with rigor on improvement of efficiency levers continues
• Cash & Cash Equivalent stood at ₹ 4,517 Crore as at June 30, 2022

Outlook

The Reserve Bank of India, during its June meeting, noted that the domestic economic recovery is gaining strength. Investment activity is to be aided by improving capacity utilisation, the government's capex push, and strengthening bank credit; this bodes well for cement demand. Further, rural consumption should benefit from a normal monsoon owing to improvement in agricultural prospects.

Disclaimer

This press release may contain "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and may contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." For us, uncertainties may arise from fluctuations in material costs, availability of limestone, demand of cement and other factors affecting the demand including those of a political, economic, business, competitive or regulatory nature. Actual future results may differ substantially or materially than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

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Ambuja Cements Limited is one of the leading cement companies in India. It is part of the Holcim Group, a global leader in building materials and solutions. For more than three decades, Ambuja Cements has provided hassle-free home building solutions with its unique sustainable development projects and environment-friendly practices.