Ambuja Cements reports FY14 results

Ambuja Cements has reported its full year results for 2014, including a 2.5% increase in cement and clinker sales volumes and a 15.5% increase in net profit after tax at Rs.1496 crores. Net sales increased by 9.2% thanks to improved sales realisation and volume growth. The company’s cost optimisation initiatives partly mitigated inflationary pressures and restricted overall cost increased, helping the company to achieve a 15.7% y/y increase in EBITDA to Rs.1928 crores.

During the year the company commissioned a roller press of 0.80 million t at its Rabriyawas plant in Rajasthan. The ‘Geo20’ project, which focuses on increasing the use of alternative fuels to reduce dependence on fossil fuels, has been commissioned at five of the company’s plans. This will not only address environmental concerns, but also reduces fuel costs.

Expansion at the Sankrail grinding plant in West Bengal, comprising the roller press and related logistics enhancements, is in progress and is expected to be commissioned in 2015. This will increase grinding capacity by 0.80 million t.

Outlook

Cement demand is expected to grow in 2015 along with higher GDP growth and improved business sentiments. Housing and infrastructure will continue to drive demand. The company will continue to work on improving efficiencies and focus on customer and commercial excellence. The company believes that these initiatives will help translate into improved performance.

Adapted from press release by Katherine Guenioui

Read the article online at: https://www.worldcement.com/asia-pacific-rim/19022015/ambuja-cements-reports-fy14-results-368/