Ambuja Cement added 275 million tonne in limestone reserves during Apr-Jun quarter

Ambuja Cement has reported a significant addition of 275 million tonnes to its limestone reserves for the April-June quarter, according to its earnings results released on Wednesday.

As part of the Adani Group conglomerate, Ambuja Cements highlighted strong performance driven by cost leadership, operational efficiencies, and growth. Ajay Kapur, Whole Time Director and CEO, emphasized, "Our focus on innovation, digitization, customer satisfaction, and ESG is central to our success."

Kapur also noted that the company's ongoing performance sets a positive tone for the financial year. With the expected closure of the Penna transaction by Q2 FY'25, Ambuja's capacity will rise to 89 million tonnes per annum (MTPA), advancing towards its goal of 140 MTPA by FY'28.

The company's green power share stood at 18.4% for the quarter, with a target to increase this to 31% by the end of 2024-25 and 60% by 2027-28. This shift is anticipated to reduce overall power costs by 33%, boosting EBITDA.

During the quarter, Ambuja Cement's net worth increased by ₹8,620 crore, reaching ₹59,465 crore, while maintaining a debt-free status. The consolidated revenue grew to ₹8,311 crore, with operating costs reduced by 3% to ₹4,437 per tonne, thanks primarily to a 13% decrease in energy costs through efficient fuel management.

The company's business-level working capital stands at 30 days, reflecting its efficiency in managing inventory and receivables. Ongoing brownfield expansions include clinker facilities at 14 sites, totaling 11 million tonnes, and cement capacity of 23.4 million tonnes. Key projects include a 4 MTPA clinker line at Bhatapara (Chhattisgarh) expected by Q4 FY'25 and a 6.4 MTPA grinding facility anticipated between Q3 and Q4 FY'25.

Ambuja, along with its subsidiaries ACC Ltd. and Sanghi Industries Ltd, has expanded the Adani Group's cement capacity to 78.9 MTPA, supported by 18 integrated manufacturing plants and 19 grinding units nationwide. The company has also entered into an agreement to acquire Penna Cement Industries Limited, adding 14 MTPA to its capacity.

ET