Tag: Ambuja Cement

Ambuja Cement Q4 Results: Cement maker reports highest ever annualised PAT, announces dividend

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Ambuja Cements reported its financial results for the March quarter on May 1. The cement maker’s net profit rose 4.2% year-on-year to ₹523.3, but missed the CNBC-TV18 poll estimates. The Adani Group firm’s revenue for the fourth quarter of the previous financial year rose 12.3% to ₹4,780.3 crore compared to ₹4,256 crore in the year-ago period. The analysts polled by CNBC-TV18 had pegged revenue at ₹4,780.3 crore.

#4QWithCNBCTV18 | Ambuja Cements reports Q4 earnings

➡️Net Profit At ₹523.3 Cr Vs CNBC-TV18 Poll Of ₹618 Cr

Here’s how the company’s actual numbers match with the CNBC-TV18 poll 👇 pic.twitter.com/olBxLePwK7

— CNBC-TV18 (@CNBCTV18Live) May 1, 2024

The Earnings Before Interest, Taxes, Depreciation, and Amortisation or EBITDA during the quarter rose 37% to ₹1,699 crore. 

#4QWithCNBCTV18 | Ambuja Cements reports Q4 earnings

➡️Net Profit Up 4.2% At ₹523.3 Cr Vs ₹502.5 Cr(YoY)

Here’s more 👇 pic.twitter.com/kaDYmHsngV

— CNBC-TV18 (@CNBCTV18Live) May 1, 2024

The cement maker, in its earning statement, said that the annualised profit after tax for the 12 months ended March stood at ₹738 crore, a surge of 119% from the year-ago period. This is the company’s highest-ever annualised PAT. The EBITDA for the financial year rose 73% to ₹6,400 crore. 

The company also announced a dividend of ₹2 per share. 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cement sector may report healthy volumes amid price dip

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Cement demand remained strong in the January to March quarter (Q4FY24) amid a decline in prices.

However, the effect of lower prices was offset by favorable input costs.

Breaking down the demand trends:

The demand in January was weak due to weather conditions and pollution-related restrictions.

But the growth rebounded in February, while March emerged as the strongest month.

Volume growth is expected to recover in the fourth quarter, driven by heavy discounting from companies and increased construction activity towards the year’s end.

Analysts expect the demand at 8-9% in Q4, a big improvement on a sequential basis. For the year, the derived volume growth for the industry is likely to be around 9%.

On a regional basis, the Southern market underperformed, while the West as well as Central India were the best-performing regions.

Pricing trends in the fourth quarter:

Cement prices have steadily declined over the past five months following the increases in September and October 2023.

Therefore, the realisations in the fourth quarter are expected to decline by around 5% sequentially.

Despite it being a seasonally strong quarter, cement prices were affected by fierce competition among major companies aiming to increase their market share.

The most significant quarterly price drop was observed in East India, at roughly 8%, with other regions experiencing declines between 3-5%.

In March, spot prices for international coal and pet coke returned to December 2023 levels. Yet they remain 5-14% lower than the averages seen in the third and second quarters.

Also Read | UltraTech Cement gets ₹7.92 crore GST demand from Karnataka authority

The operating leverage and stable to decreasing variable costs on a quarter-over-quarter (QoQ) basis are expected to keep overall costs in check, with a projected decline of 4-6% year-over-year (YoY) and sequentially.

Brokerage firm Jefferies forecasts that the stocks it covers will experience an earnings before interest, taxes, depreciation, and amortisation (EBITDA) per tonne reduction of approximately ₹110 on a sequential basis.

However, EBITDA per tonne is anticipated to increase by about ₹125 on a YoY basis.

Most companies are expected to see EBITDA per tonne growth, with ACC particularly well-positioned due to easing costs, volume growth from recent capacity additions, and relatively favorable valuations compared to its peers. This growth is also partly attributed to the low base effect from the previous year.

Among the larger peers, Jefferies expects the highest growth for Ambuja Cement at the consolidated level over last year, while UltraTech and Shree Cement are expected to grow by around 18 to 27% in terms of EBITDA.

In midcaps, Dalmia could potentially underperform with sub-10% growth, while JK Cement, and Birla Corp, could outperform with nearly 50% EBITDA growth.

What next?

Given the ongoing general election, a decrease in demand is possible. However, it’s crucial to monitor the extent of price increases, their market acceptance, and the expected recovery in demand later in the financial year (April to March 2024-25).

For more details, watch the accompanying video

Catch all the latest updates from the stock market here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ambuja Cements to acquire 1.5 MTPA cement grinding unit in Tuticorin for ₹413.75 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Ambuja Cements Ltd. has entered into a definitive agreement to acquire My Home Group’s 1.5 MTPA cement grinding unit in Tuticorin for ₹413.75 crore, it said in an exchange filing.

This will help the company expand its coastal footprint across the southern markets of Tamil Nadu and Kerala. Ambuja will fund the acquisition through internal accruals.

With this acquisition, the total cement capacity of the Adani Group stands at 78.9 MTPA. UltraTech is currently the leading cement player in the country with its capacity recently crossing the 150 MTPA mark.

Ambuja will also inherit the existing dealer network and also retain current employees to facilitate a smooth transition and enable the ramp-up of utilisation.

Located near the Tuticorin Port, the plant is spread across 61 acres of land with a long-term fly ash supply agreement for raw material sourcing. The asset is said to be value accretive.

“The limited availability of limestone in Tamil Nadu presents a unique competitive advantage with coastal movement of clinker from the Sanghipuram Plant, ensuring cost-efficient operations.

In August last year, the Adani Grooup had acquired a controlling stake in Sanghi Cements via Ambuja at an enterprise value of ₹5,000 crore. Recently, Ambuja sold a 2% stake in Sanghi Industries.

Shares of Ambuja Cement recovered from opening lows and are currently trading 0.4% higher at ₹611.45.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sanghi Industries’ operating profit per tonne will match Ambuja’s in two years, says Karan Adani

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Ambuja Cements is aiming for its latest acquisition Sanghi Industries to deliver an operating profit of Rs 1,000 per tonne in the next 24 months.

In an interaction with CNBC-TV18, Ambuja Cements Director Karan Adani said that within the next two years, the EBITDA per tonne of Sanghi will match that of Ambuja. “There is a possibility that within 24 months we will look at Sanghi Industries delivering Ebitda/tonne of Rs 1,000,” Adani said.

Adani was speaking to CNBC-TV18 after Ambuja Cements announced that it will be acquiring a 56.74 percent stake in Gujarat-based Sanghi Industries at an enterprise value of Rs 5,000 crore.

The acquisition also triggers an open offer, under which, Ambuja will be acquiring an additional 6.71 crore shares or 26 percent of the voting share capital at Rs 114.22 per share from the public shareholders of the company. This price is a 14 percent premium to the Sanghi Industries’ closing price on Wednesday.

Adani further said that there is no plan to merge any of Adani Cement’s listed entities as of now. “As of right now, we are focusing on closing this transaction, doing the open offer, I think much merging (Sanghi) with Ambuja we will take a call anything between six to 12 months after takeover,” he said.

Ambuja plans on increasing its cement capacity to 10 MT by March 2023. Adani said that this will entail a move of Rs 500 crore. The plan is on increasing the capacity towards 15 MT within the next 24 months. The total capex for expanding from 10 MT to 15 MT would be Rs 3,000 crore.

The cement company is also looking to proceed with its already announced Mundra expansion. Adani said that the acquisition of Sanghi and the expansion of Mundra will both serve different markets.

“If you see Sanghi is predominantly plant which will be running on coastal routes and it will be serving the markets of Saurashtra of South Gujarat, of Mumbai, Karnataka, Kerala so, it is a predominantly a coastal route strategy. Whereas, Mundra the plant will be more on the railway front,” Adani said.

“So, it will be tap tapping the hinterland of Gujarat, North Gujarat, and up to central Gujarat, so up to Ahmedabad and that that also is a significant market. So, it’s two different geographies and two different markets that we will be tapping through both these plants,” he added.

Ambuja Cements has a target of doubling its cement capacity to 140 MT by 2028. Post this acquisition, its capacity will move up to 73 MT. The combined Adani Group aims to have 101 MT cement capacity by 2025. The cement company further said that the target of 140 MT will be achieved ahead of time.

“The remaining 40 million tonne – 100 percent of it is organic. Anything above and beyond that we would look at as in when the inorganic opportunity comes. But the 40 million tonne is predominantly fully organic,” Adani said.

Shares of Ambuja Cements are trading 1.5 percent higher at Rs 467.95.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explained: What led to the Sanghi Industries sale and how Ambuja benefits from it

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Adani Group’s Ambuja Cements has decided to acquire a 56.74 percent stake in Gujarat-based Sanghi Cements at an enterprise value of Rs 5,000 crore.

The company will also be acquiring an additional 26 percent stake through an Open Offer from public shareholders of Sanghi Industries. Ambuja, funding this acquisition through internal accruals, will be completing this transaction in the next 3-4 months.

But what triggered the sale of Sanghi Industries?

Sanghi Industries has clinker capacity of 6.6 MTPA and cement capacity of 6.1 MTPA. The company reported an operating loss of Rs 14 crore in financial year 2023.

A key reason for this was the elevated finance costs, which stood at Rs 238 crore for financial year 2023 from Rs 82 crore in financial year 2022.

As of June 2023, the Sanghi’s promoters had 72.72 percent stake in the company. However, 98.88 percent of that is pledged, which means nearly all of the promoter holding in the company is pledged.

What Are Ambuja Cements’ Plans?

Ambuja’s capacity at the end of 2023 stood at 67.5 million tonnes. The company has laid out plans to expand its overall capacity to 140 million tonnes by 2028.

The company in May announced that it will be expanding its Clinker capacity by 8 million tonnes across its Bhatapara and Maratha units. The capacity expansion projects will enable production of Blended Green Cement of 14 million tonnes, post all requisite approvals.

These mix of brownfield and greenfield expansion projects are expected to be commissioned within the next 24 months.

With Sanghi Industries’ limestone reserves of a billion tonnes, Ambuja will increase the cement capacity at Sanghipuram to 15 MTPA in the next two years. It also aims to make Sanghi the lowest cost producer of Clinker in the country.

As of the June quarter, Ambuja’s cash and equivalents on its books stood at Rs 11,886 crore. The management has mentioned that internal accruals are sufficient to fund the Rs 46,000 crore capex needed to double Ambuja’s capacity in five years.

Impact On Ambuja’s Capacity Goal

• Ambuja’s capacity now increases to 73.6 MTPA post this deal
• Adani Group’s capacity will now be 101 MTPA by 2025
• Ambuja has mentioned that their goal of 140 MTPA capacity by 2028 will be achieved ahead of time.

How Does The Deal Benefit Both Ambuja And ACC?

• A key benefit for both ACC and Ambuja will be that it will help their expansion plans into the Western Markets of India. The Western part of the country accounts for 14 million tonnes or 20 percent of combined capacity.
• Having good limestone reserves is key for any cement company’s expansion plans. Sanghi Industries has high mineral grade limestone, which has purity of over 90 percent.
• Ambuja gets good expandable capacity at a decent valuation of $100 per tonne at 6.1 MTPA capacity.
• Lastly and the most basic one, the acquisition will add to Ambuja’s plans of doubling their existing cement capacity by 2028.

How does the deal benefit Sanghi?

• Ambuja will be acquiring 56.74 percent stake from its promoters
• Promoters get a good deal as they were unable to scale up
• Sanghi shareholders will also be pleased to have a strong promoter
• Shares of Sanghi have nearly tripled from their 52-week low.

Impact On the Industry

• Consolidation in the industry is normally read positively
• Need to see how pricing trends emerge in the Gujarat market as there will now be more supply.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ambuja Cements to acquire 56.74% stake in Sanghi Industries at an enterprise value of Rs 5,000 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Ambuja Cements Ltd., now part of Gautam Adani’s Adani Group will be acquiring a majority stake in Sanghi Industries, the company mentioned in an exchange filing.

The pan-India cement manufacturer will be acquiring 14.65 crore shares, amounting to a 56.74 percent stake in Saurashtra-based Sanghi Industries at an enterprise value of Rs 5,000 crore.

As of the June quarter, promoters of Sanghi Industries held a 72.72 percent stake in the company, most of which is pledged.

The acquisition also triggers an open offer, under which, Ambuja will be acquiring an additional 6.71 crore shares or 26 percent of the voting share capital at Rs 114.22 per share from the public shareholders of the company. This price is a 14 percent premium to the Sanghi Industries’ closing price on Wednesday.

Ambuja Cements will be funding the acquisition through internal accruals. The deal will be completed in the next 3-4 months.

Additionally, Ambuja Cements has also entered into an inter-corporate deposit agreement with Sanghi Industries, under which it will provide an unsecured inter-corporate deposit worth Rs 300 crore to Sanghi, in one or more tranches for general corporate purposes.

The ICD agreement does not provide for any special rights, such as the right to appoint directors, first right to share subscription in case of issuance of shares, right to restrict any change in capital structure etc.

Sanghi Industries has an overall capacity of 6.6 MTPA of clinker and cement capacity of 6.1 MTPA. The company’s Sanghipuram unit is India’s largest single-location cement and clinker unit by capacity, with a captive jetty and captive power plant.

With this acquisition, Ambuja’s capacity will now increase to 73.6 MTPA. The company has a goal of taking its capacity to 140 MTPA by 2028 and it said that the same would be achieved ahead of time.

“Our aim is to make Sanghi Industries Ltd. the lowest cost producer of clinker in the country,” Ambuja said in a statement. Ambuja also aims to increase the cement capacity at Sanghipuram to 15 MTPA in the next two years.

Ambuja Cements in the June quarter had reported total sales volumes of 9.1 MT compared to a CNBC-TV18 poll of 8.5 MT. Volume growth of the quarter stood at 23 percent compared to the same period last year.

The company’s net profit at Rs 645 crore was in-line with expectations of Rs 639 crore. Revenue and operating profit for the quarter were slightly higher than estimates of the CNBC-TV18 poll.

Shares of Ambuja Cements are trading 2.8 percent higher at Rs 474, while those of Sanghi Industries are locked in an upper circuit of 5 percent.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ambuja Cement profit dips to Rs 645 crore for June quarter, meets estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Cement maker Ambuja Cement recorded a standalone net profit of Rs 645 crore for the April to June 2023 quarter, as against CNBC-TV18 poll estimate of Rs 639 crore, the firm’s financial results showed on August 2. This, however, is 38 percent lower than Rs 1,052 crore in the same quarter last fiscal.

The Adani Group-owned cement maker recorded a revenue of Rs 4,729.7 crore, a jump of 18.4 percent on a year-on-year basis. Analysts polled by CNBC-TV18 had expected the top line growth to be around 11 percent.

It’s important to note, as analysts had earlier pointed out, the profit after tax (PAT) could witness a substantial decline due to a higher component of other income in the base quarter. If that is kept aside, the overall performance was expected to be impressive as the results show. The firm has exceeded expectations on all fronts, apart from profit and margin.

Ambuja Cement’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in 38 percent higher on a year-on-year basis at Rs 948.8 crore. Ambuja Cement’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in 38 percent higher on a year-on-year basis at Rs 948.8 crore. Margin, meanwhile, rose to 20.1 percent for the June ended quarter.

Analysts had earlier said that margins would expand due to operating leverage, lower input costs like pet coke and coal prices, and reduced unitary costs resulting from the shutdown of Ambuja Cements’ Himachal Pradesh unit in the previous quarter. With operations restarted, the current quarter was expected to benefit.

Ambuja Cement’s total sales volumes came in at 9.1 mt versus poll prediction of 8.5 mt. This 23 percent higher than the sales in the corresponding quarter last financial year.

Ajay Kapur, Whole Time Director and CEO, Ambuja Cements, said “Along with the strong demand for our premium cement products, growth was fueled by our various competences in operational excellence, supply chain management, and sales and marketing excellence.”

He highlighted that the firm’s synergies with the Adani Group companies are lowering input costs, which is boosting EBITDA growth.

It must be noted that Ambuja Cement’s consolidated numbers also include ACC’s figures as the two were acquired by Adani group last year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ambuja Cement places order for expansion of clinker capacity by 8 MT

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Ambuja Cement on Friday announced that it has placed orders to expand its clinker capacity by 8 million tonnes. The capacity expansion will take place at Bhatapara and Maratha units on highest ESG standards with 42 MW of WHRS, provision to utilize 50 percent AFR and provision to operate on green power.

The Adani Group’s cement and building material company has said that the capacity expansion projects will enable production of Blended Green Cement of 14 million tonnes, post all requisite approvals. These projects will generate substantial value to the existing business and enable more employment and growth opportunities in the states, beneficial for all stakeholders.

The company says that these projects are expected to be commissioned in 24 months and the CAPEX will be funded from internal accruals.

“These brownfield expansion projects are part of our strategy to double our production capacity over the next five years from the current capacity of 67.5 MTPA. Our ongoing investments in capacity expansion and sustainability will enable us to achieve our long-term objectives, as we remain committed to delivering sustainable growth and value to our stakeholders,” says Ajay Kapur, CEO of Cement Business at Ambuja Cement.

Besides, earlier on May 2, 2023, Ambuja Cements reported a standalone profit of Rs 502.4 crore for the fourth quarter ended March 31, 2023, up 1.5 percent, against Rs 495 crore posted in the corresponding quarter last financial year. The cement manufacturer’s standalone revenue grew by 8.4 percent at Rs 4,256.3 crore against Rs 3,925 crore posted last year.

In addition, Ambuja Cements has been declared as the ‘Preferred bidder’ for the Devalmari Katepalli Limestone Block in an e-auction conducted by the Maharashtra Government. The block is situated in Gadchiroli District, Maharashtra over an area of approx. 538 hectare with estimated limestone resource of about 150 million tonnes having Calcium Oxide (CaO) content of more than 42 percent.

The cement manufacturer shall get the statutory licenses and permits related to mining operations to be declared a ‘successful bidder’ and subsequently enter into a ‘Mine Development and Production Agreement (MDPA)’ with Government of Maharashtra to commence the mining operation.

Ambuja Cement, with its subsidiary ACC Ltd, has a capacity of 67.5 million tonnes with fourteen integrated cement plants and sixteen cement grinding units across the country.

The stock is trading flat on the exchanges on Friday at 1:30pm.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ambuja Cements Q4 profit rises marginally to Rs 502 crore; co announces final dividend

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Ambuja Cement, now a part of Adani Cement, on Tuesday reported a standalone net profit of Rs 502 crore for the March quarter. This was up 1.6 percent as against Rs 494 crore in the corresponding quarter of last year. The company’s board has also recommended a final dividend of Rs 2.50 per equity share for fiscal FY23.

Revenue from operations surged 8 percent to Rs 4,256 crore for the reporting quarter. It was Rs 3,927 crore in the same period a year ago.

The cement maker has reported an EBITDA or earnings before interest, tax, depreciation and amortisation of Rs 788 crore for the March quarter, which is marginally down from Rs 793 crore reported in the year-ago period.

The board has recommended payment of a final dividend of Rs 2.50 per equity share of Rs 2 each (fully paid-up) for the financial year ended March 2023. The final dividend, as recommended by the board of directors, if approved at the AGM will be paid on or after July 25, 2023.

The record date for the payment of the final dividend is Friday July 7, 2023.

Ajay Kapur, Whole Time Director and CEO of Ambuja Cements said, “Our focus on operational excellence and cost optimisation measures have yielded improved profitability. We have been able to maintain our growth trajectory and further strengthen our position in the market.”

Ambuja is one of several Adani group companies caught in the eye of a storm since late January when US-based short-seller Hindenburg Research raised concerns on the conglomerate’s debt levels and use of tax havens, allegations the group has completely denied.

Shares of Ambuja Cement settled 0.48 percent lower at Rs 394.40 apiece on the BSE in Tuesday’s trade. The stock rose 2.83 percent in the last one week, while on a year-to-date basis it dipped 25.08 percent.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow