Ambuja Cement’s Strong profit growth in July-September 2019 quarter

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• Net Profit After Tax (PAT) up by 31%
• EBITDA higher by 23%
• EBITDA Margin at 17.2%; up by 300 bps

“In the backdrop of general slowdown in economy and subdued construction activity,
Ambuja has delivered yet another quarter of good EBITDA and PAT growth despite lower
volumes. This has been possible with a clear focus on product mix enrichment and reduction
in logistics costs. Premium products registered a growth of 17% year on year and the
company maintained its progress on fossil fuel substitution with alternative fuels and
renewable energy. With these efforts, I am happy to announce that Ambuja Cement is now
ranked 4th in the global Dow Jones Sustainability Index rankings, emphasizing our strong
focus on sustainability.
I am also happy to report significant progress at our greenfield project site in Marwar Mundwa.” said Bimlendra Jha, Managing Director and CEO.
Financial Performance
Net Sales stood at~ 2,556 crore compared ~ 2,522 crore in the corresponding quarter of
the previous year. Cement realisation registered a growth of ~5% year on year. Freight &
forwarding costs saw reduction year on year on account of network optimization, contract
re-negotiation and logistics efficiencies.
For the quarter operating EBITDA stood at ~ 440 crore against ~ 358 crore in the
corresponding quarter of the previous year.

Ambuja Cements Ltd. is one of the leading cement companies in India. It is part of the LafargeHolcim Group, the world leader
in the building materials industry, with a presence in 80 countries , and a focus on cement, aggregate and concrete. For three
decades, Ambuja Cements has provided hassle-free home building solutions with its unique sustainable development projects
and environment-friendly practices.

Highlights for Consolidated results July to September 2019 (versus July to September 2018)
• Net Profit After Tax (PAT} up by 34%
• EBITDA higher by 24%
• EBITDA Margin at 16.8%; up by 310 bps

Performance of Material Subsidiary- ACC Limited
Net Sales during the quarter went up by 3% to~ 3A64 crore compared to~ 3,364 crore for
the same quarter last year. Operating EBITDA for the quarter grew strongly by 26% year on
year to reach’ 557 crore.

Outlook
Recent reforms announced by the Government, i.e. sharp cut in corporate tax, aggressive
divestment plan coupled with the Reserve Bank of India’s latest interest rate cuts, ought to
augur well for the economy. These measures should support growth and hence boost
cement demand. Healthy monsoon bodes well for rural housing demand which is a key
segment for cement. The above factors along with higher spends in infrastructure and
affordable housing are also expected to favor demand .

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