2012 financial results and 2013 outlook
Ambuja Cements Ltd, India, has released its audited financial results for 2012, revealing both sales and profit growth. Cement sales volumes increased by 2.5% y/y to 21.43 million t, with production up 3.1% y/y to 21.62 million t. Total net sales came in at Rs.9675 crores compared to Rs.8504 crores in 2011. Profit before and after tax also registered growth, rising by 11.7% y/y and 5.5% y/y, respectively. Profit after tax, which reached Rs.1297 crores, takes into account a one time additional charge of Rs.279 crores due to a change in the depreciation policy for captive power plants.
Going forward, Ambuja Cements Ltd expects cement demand to increase. The company plans to enhance efficiency and productivity in order to counteract the anticipated rise in energy, logistics and raw materials costs.
Expansion and sustainability
In 2012, the cement manufacturer increased capacity at its Bhatapara plant, Chhattisgarh, by 0.6 million tpa. This brought Ambuja Cements’ total cement grinding capacity to 27.95 million t. A new 1 million t bulk cement terminal is under construction in Mangalore and is due to begin operating this year, increasing the company’s reach in southern India. In the east of the country, there are plans to expand the Sankrail grinding unit’s capacity by 0.8 million t. The company has also introduced its ‘Geo20’ project, which aims to ramp up the use of alternative fuels across five plants over the coming years. The project, which represents an investment of Rs.200 crores, will reduce fuel costs and address environmental issues.
Adapted from press release by Louise Fordham.