Ambuja Cement Q2 results: Profit jumps 45%; high energy costs hurt
Ambuja Cement has reported a 45% rise in its standalone net profit, aided by higher sales, dividends from subsidiary ACC and a one-time reversal of tax provisions. Higher energy dented the company’s bottomline.
Ambuja Cement Q2 highlights
Ambuja Cement Q2 Consolidated profit decline: Ambuja Cements reported a decline of 25.46% in its consolidated profit due to rising fuel prices and related inflationary impacts. Profit stood at Rs 865.44 crore for the June quarter. The company follows January to December as its financial year. In the year-ago period, it reported a consolidated profit of Rs 1,161.16 crore.
On a standalone basis, Ambuja Cements reported an increase of 44.92% in its net profit to Rs 1,047.90 crore as against Rs 723.08 crore in the corresponding quarter last year.
Ambuja Cement Q2 Revenue: The revenue from operation for the June quarter stood at Rs 8,032.88 crore, up 15.11% as compared to the same period last year. In the year-ago period, the company reported revenue of Rs 6,978.24 crore.
Its standalone revenue was Rs 3,993.45 crore, up 18.45% in the April-June quarter as against Rs 3,371.18 crore a year ago.
Ambuja Cement Q2 earnings: EBITDA and margins- The EBITDA for Q2'22 was reported as Rs 684.5 crore, which is 1.1% higher as compared to Rs 677 crore in the corresponding period last year. The EBITDA margin came in at 17.14% which is 16 basis points lower as against 17.3% in the same quarter last year.
Ambuja Cement earnings update total expenses: The company reported total expenses of Rs 7,276.72 crore in the June quarter. The expenses increased by 33.09% from Rs 5,467.33 crore in the year-ago period.
Ambuja Cement sales volume: The sales volume was up 15.1% in the April-June quarter at 7.39 million tonnes per annum (MTPA) from 6.42 MTPA in the corresponding quarter.
Ambuja Cement Q2 management commentary: "Ambuja has recorded robust volume growth of 15%, and top-line growth of 18% in the quarter. However, the April to June 2022 quarter was impacted by rising fuel prices and related inflationary impacts," Neeraj Akhoury, CEO, Holcim India, and Managing Director & Chief Executive Officer, Ambuja Cements.
How was Ambuja Cements' result?
For Q2'22, on a standalone basis, Ambuja Cements reported an increase of 44.92% in its net profit to Rs 1,047.90 crore. However, the consolidated profit was down.
What helped the company’s earnings?
The company reported other income of Rs 632 crore including dividends from ACC and reversal of a tax provision. This helped it improve its standalone bottom line by 45% to Rs 1,048 crore.
What is the target price of Ambuja Cement?
HDFC Securities has given a REDUCE call on Ambuja Cements with a target price of Rs 360.