Ambuja Cements Ltd. reported a healthy performance, where revenue grew by 8% YoY aided by +7% YoY volume growth and 1% YoY net sales realisation growth in Q3 FY24.
Raw material cost/tonne surged by 42% YoY due to higher clinker transfer because of maintenance shutdown during the quarter. Despite that, the total cost/tonne decline by 4% YoY aided by eased power cost/te by 34% YoY translates in Ebitda of Rs 1038/tonne (+28% YoY).
Ebitda/profit after tax grew by 36/19% YoY to Rs 8.5/5.1 billion in Q3 FY24. Under new management, Ambuja Cements targets to reach 140 mtpa by FY28E to regain the lost market share.
In this endeavor, Ambuja Cement is adding 19.6 mtpa of cement capacity with 10.25 mtpa clinker. Moreover, with the Sanghi Indsutries Ltd./ Asian Concretes and Cements Pvt. Ltd. acquisition, the console capacity to reach 110 mtpa by FY28E.
As a result, the incremental volume from newly commissioned capacities will start from FY26E onwards, while standalone volume should grow at ~10% compound annual growth rate over FY24-26E supported by master supply agreement with subsidiaries.
