Ambuja Cements, the building materials arm of Adani Group, has reported 94.24 per cent declined in its net consolidated profit during the quarter ended September 30, 2022. Its profit after tax (PAT) stood at Rs 51.30 crore in Q2 FY23 as against Rs 890.67 crore it recorded in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s total consolidated income stood at Rs 7,244.78 crore in Q2 FY23, a growth of 7.48 per cent from Rs 6,740.57 crore it recorded in the similar quarter last year.
“Cement industry has been facing significant margin pressure resulting from steep rise in global energy prices. However, recent cooling off in energy prices and post monsoon demand pick up appears like silver lining for coming quarters. With the equity infusion by the promoter group in the company, the expansion program will gather pace in the coming time. Considering the promise, we made to double our manufacturing capacity over the next five years, our growth plans are ambitious. and this will be evident in 2023. While cost pressures have not gone away, our growth plans remain strong,” said Ajay Kapur, CEO of the company.
On October 18, 2022, pursuant to the shareholder’s approval, the company had allotted 477,478,249 warrants to Harmonia Trade and Investment (a promoter group entity) by way of preferential issue at a price of Rs 418.87 each aggregating to Rs 20,001 crore and has received Rs 5,000.15 crore (equivalent to 25% of the warrants issue price).
The company recorded a growth of 12% in cement volume from 6 metric tonne (MT) in Q2 FY22 to 6.7 MT in Q2 FY23. It recorded net sales of Rs 3,631 crore in the said quarter, an increase of 14% as compared to Rs 3,193 crore in the similar quarter last year.