Adani-owned Ambuja Cements Ltd on Tuesday reported marginal rise in net profit at Rs 502 crore for the quarter ending March 31, 2023. It was Rs 494 crore in the year-ago period.
The cement maker's revenue from operations rose 8% to Rs 4,256 crore in Q4FY23 as compared to Rs 3,927 crore in Q4FY22.
The company declared final dividend of Rs 2.5 per share.
"Board recommended payment of final dividend of Rs 2.5 per equity Share of Rs 2 for the financial year ended March 31, 2023 and the same shall be payable subject to approval of the Shareholders at the ensuing Annual General Meeting of the Company. The final dividend, as recommended by the Board of Directors, if approved at the AGM will be paid on or after 25th July 2023," the company said in a stock exchange filing.
On Tuesday, Ambuja Cements' scrip on BSE closed 0.87% lower at Rs 393.05.
''Sustained volume growth supported by an increase in blended cement (clinker factor reduced from 62.5 per cent to 60.6 per cent), better route planning and higher operational synergies with its subsidiary, ACC,'' it said, adding, ''market leadership strongly maintained across key markets.'' Sales volume of Ambuja Cements on a standalone basis was up 2.66 per cent to 7.7 million tonnes (MT) from 7.2 MT.
''The growth in revenue is despite the adverse impact on volumes from halting of the operations at the Himachal Pradesh plants for 50 days,'' said Ambuja Cements in its earnings statement.
In the March quarter, cost was reduced by Rs 228 PMT and expected to further reduce on cost optimisation and leveraging synergies from adjacency businesses of the group, it added.
''Business excellence initiatives are expected to further bring down the operating cost, reduce clinker factor, reduce logistics cost, improve sales of blended cement and expand EBITDA margin,'' it said.
Ambuja Cements CEO Ajay Kapur said the company has reported another strong performance, which has been driven by strategic initiatives on business excellence, operational efficiencies and synergies.
''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. With the rise in construction activities across our markets, we see the continuation of the elevated demand and strong volumes in the coming quarters as well,'' it said.
He further said, ''We, at Ambuja, remain committed to delivering sustainable growth and value to our stakeholders, and we are confident that our ongoing investments in capacity expansion and sustainability will enable us to achieve our long-term objectives.'' Over the outlook, the Adani Group firm said it is encouraged by the government's increased spending on infrastructure development, particularly roads, railways, affordable housing and other schemes as announced in the recent Union Budget.
''We are optimistic and maintain a positive outlook that the government's timely and pro-active measures will open more opportunities for the cement sector, that will stimulate cement demand and enhance economic growth,'' it said.