Ambuja Cements Limited, one of India’s leading cement manufacturers, is Known for its quality and durability, the brand has been a choice for various infrastructural projects across the country. Ambuja Cement has recently released its financial results for the second quarter (Q2) of the fiscal year 2023-24.
The results show a successful financial story for the company, which is part of the famous Adani Group. In this article, a detailed explanation will be provided about its EBITDA, Net Profit, Revenue and sales.
Ambuja Cement Q2 EBITDA Analysis
| Financial Metric | Amount (in Crore INR) |
|---|---|
| Net Profit | ₹643.84 to ₹793 |
| Standalone Revenue from Operations | ₹3,969.79 |
| Operating EBITDA | ₹771.5 |
| Total Expenses | ₹6,564.28 |
| Cash and Cash Equivalents | ₹3,479 |
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s a measure that gives an idea about a company’s profitability and is especially useful for comparing the financial performance of different companies in the same industry. In Q2, the operating EBITDA witnessed a rise to ₹771.5 crore from ₹313 crore in the last quarter.
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For Ambuja Cements, the total expenses were reported to have decreased by 8.52% in Q2 2023, amounting to ₹6,564.28 crore from ₹7,175.81 crore a year ago. This reduction suggests that the company has managed its costs effectively, which is a positive sign for profitability.
Ambuja Cement Net Profit and Revenue and Sales Volume
The report’s focus is the significant increase in net profit. The net profit is the amount a company earns after deducting all the expenses, including taxes and other charges from the total revenue. Although the estimates vary between reports, they range from 643.84 crore to 793 crore.
When compared to the net profit of 93.18 to 139 crore in the same quarter the previous year, the increase is significant. This was a four-fold increase, and the reported net profit was 25% higher than the CNBC-TV18 poll projection of ₹515 crore.
The standalone revenue from operations, which is the revenue from the main business activities, showed an increase of 8% year-on-year, reaching ₹3,969.79 crore. Also, the consolidated revenue, which includes all earnings, rose by 9.1%.
On the sales front, the cement sales volume saw a growth of 12%. This growth in sales volume reflects a higher demand for Ambuja Cement’s products, which in turn, is a positive indicator of the company’s market position.
Cash Position
The cash and cash equivalents, which are the company’s money or assets that can be quickly turned into cash, stood at ₹3,479 crores at the end of the quarter. This is a trustworthy indicator of the company’s financial status.
The EBITDA was impacted by the rise in fuel cost, but this was balanced out by a reduction in logistics costs and a coal supply from captive coal blocks. These measures helped in reducing the impact of rising fuel costs on the EBITDA.