Adani Group’s Ambuja Cements reported robust performance for the three months ending September 2024. The company achieved its highest Q2 volume in the last five years, recording a 9 percent growth to reach 14.2 million tonnes.
The company also reported its highest-ever quarterly revenue at Rs 7,516 crore, up 1 percent from Rs 7,439 crore in the corresponding period of the previous year. Ambuja’s net worth rose to Rs 59,916 crore for the period under review.
Ambuja Cements attributed the success of the company to a set of factors: healthy volume growth, an increase in scale of operations, value extraction from acquired assets, improvement in operational efficiencies, and cost leadership strategies.
Ajay Kapur, Whole Time Director and Chief Executive Officer, said he was delighted by the performance. “We are glad to deliver another sustained performance aligned to our growth blueprint, setting new benchmarks in efficiency,” he said. Now, according to him, the focus of the company is fully on innovation, digitalization, and customer satisfaction. Besides, ESG considerations form part of their core business strategy.
Once the Orient Cement deal is successfully through, Ambuja will be well-set to achieve a capacity of over 100 million tonnes per annum by the close of the ongoing fiscal. The company further said that its working capital is at 33 days. The latter reflects the efficiency of a company’s agility in managing inventories and receivables.
Going ahead, Ambuja is expecting strong demand in the second half of 2024-25. Supported by heightened infrastructure projects along with sustained housing demand. The government has announced the launch of PMAY Urban Housing 2.0 with an outlay of Rs 11 lakh crore, which indicates a strong thrust for the sector. Besides, infrastructure development by the government will be crucial to attain overall economic growth.
The growth could be further driven by road and railway strategic investments, along with urban amenities. Ambuja Cements expects demand to grow 4-5 percent in the current fiscal. Ambuja’s total cement capacity reaches 89 million tonnes per annum. Along with its subsidiaries, backed by 22 integrated manufacturing plants and 21 grinding units across the country.
In short, Ambuja Cements continues its commitment to spreading and increasing its presence in the cement market.
ANI
