The Adani Cement company sold 16.6 million tonnes of cement and clinker during the quarter – the highest in 20 quarters – while the operating profit it made on each tonne of cement sold rose 17% on year to Rs 1,026.
It also announced a dividend of Rs 2/share.
“Cost optimisation remains core part of our strategy,” Ajay Kapur, the chief executive officer for Ambuja Cements said. “Our growth blueprint implemented in the previous year towards capacity-building through organic and inorganic way, operational efficiency, and decarbonisation measures are yielding excellent results,” he said.
Ambuja Cements has added 11.4 million tonnes of capacity, and completed three acquisitions over the last 18 months, and will commence production of 4 million tonnes of clinker and 4.8 million tonnes of cement capacity by the March quarter of the current fiscal.Adani Cement, which consists of Ambuja Cements, ACC and Sanghi Industries, is currently the second-largest producer of cement in the country with a capacity of nearly 79 million tonnes, and intends to have a capacity of 100 million tonnes by 2026, and 140 million tonnes by 2028.“The cement industry’s outlook remains positive driven by pre-election spending, ongoing government emphasis on infrastructure development, and sustained real estate activity,” it said in a statement.Its consolidated sales grew nearly 12% on year to Rs 8,894 crore in the March quarter, while the consolidated operating profit surged 37% on year to Rs 1,699 crore. Operating margins improved by 350 basis points on year to 19.1% during the quarter.
The company’s cash and cash equivalents are currently at an all-time high of Rs 24,338 crore, and has a capacity utilization of 82% during the quarter, and 81% in 2023-24 (Apr-Mar).