Fall in sales and profit for Ambuja Cements in 2013

Ambuja Cements Ltd has released its audited financial results for the year ended 31 December 2013.

2013 results

• Sales of cement and clinker saw a slight decrease of 1.8% y/y from 21.99 million t in 2012 to 21.6 million t in 2013.
• Net sales fell by 6.1% y/y from Rs.9.675 crore in 2012 to Rs.9.087 crore in 2013.
• Operating EBITDA declined from Rs.2.473 crore in 2012 to Rs.1.651 crore in 2013, a fall of 33.2% y/y.
• Net profit before tax stood at Rs.1.514 crore in 2013, a 20.4% y/y decrease from 1.902 crore in 2012.
• Net profit after tax saw a marginal fall of 0.2% y/y from Rs.1.297 crore in 2012 to Rs.1.295 crore in 2013.

Projects update

• In 2013, the company commissioned a 1 million tpa bulk packing terminal at Mangalore, Karnataka.
• Expansion at the Sankrail grinding facility in West Bengal (comprising the roller press and related logistics enhancements) is in progress and commissioning is expected in 2015. This will increase the unit’s grinding capacity by 800 000 t.
• The company is installing a roller press, which is likely to be commissioned in 2014, at its Rabriyawas plant in Rajasthan, increasing the facility’s grinding capacity by 800 000 t. Furthermore, a railway line is being constructed to connect the plant with a rail junction at an estimated cost of Rs.250 crore. It is likely to be operational in 2016.
• The ‘Geo20’ project, which focuses on increasing the usage of alternative fuels to reduce dependence on fossil fuels, is progressing well. The project involves a capital outlay of Rs.200 crore at five integrated plants and is likely to be completed by the end of 2014.

Outlook

The outlook for 2014 continues to remain challenging due to tough macroeconomic conditions and subdued cement demand. The company has been able to keep its production costs flat y/y and will continue to work on improving operational efficiencies, cost optimisation and continued focus on customer and commercial excellence.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldcement.com/asia-pacific-rim/06022014/fall_in_sales_and_profit_for_ambuja_cements_in_2013_706/