Financial Performance for the Quarter ended 30 June 2020
Volumes were impacted during the second quarter of 2020 as a result of COVID-19 lockdown. Cement sales volume declined by 29% during this quarter as compared to the same period of the previous year. Net Sales during the quarter were at Rs. 2 145 Crore compared to Rs. 2 912 Crore in the corresponding quarter of the previous year.
Cost delivery for the quarter was pivoted around raw material, power and fuel, logistics costs and other fixed costs. Network optimisation gained momentum due to acceleration of the Master Supply Agreement (MSA) with ACC.
As a result, operating EBITDA witnessed a margin expansion of 380 bps in April – June, 2020. Absolute operating EBITDA for the quarter registered a decline of 15% to Rs. 595 Crore as compared to the corresponding quarter of the previous year.
Profit after tax was up by 10% for the quarter from Rs. 412 Crore in 2019 to Rs. 453 Crore in 2020 on account of dividend income. The company generated additional cash and cash equivalent of Rs. 714 Crore during January – June 2020.
The greenfield project at Marwar Mundwa, Rajasthan, is also progressing.
COVID-19: update on actions
“We are determined that health of our employees and partners is accorded the highest priority. The country is working to surmount Covid-19 related challenges and Ambuja is a proud partner in these collective efforts. Our Ambuja Cement Foundation has been a flag bearer in delivering support to our stakeholders.
Ambuja has recorded yet another quarter of very strong results with operating EBITDA margin of 28%. In spite of complete lockdown in April, volume decline of 29% was more than offset by lower costs, which fell by 31%. Our sharp focus on cost reductions across value chain and cash management has helped to further strengthen our strong balance sheet. Ambuja has remained resolutely focused on Health, Productivity and Cost along with working closely with the community,” said Mr. Neeraj Akhoury, Managing Director & CEO.
The company resumed operations in a phased manner post 20 April 2020 after assessing the local situation. Ambuja’s Business Resilience Team ensure that the company’s employees, customers, suppliers and communities remain safe under new operating conditions. Ambuja Cement has a long history of reaching out to communities and people in need. During Covid-19 situation, the company stepped up its CSR efforts to assist thousands of impacted people – daily-wagers, slumdwellers and migrant labourers. The company’s model of engaging with community stakeholders through the Ambuja Cement Foundation (ACF) enabled it to reach out to nearly 700 000 people in 2000 villages across the country. The company also partnered with three reputed NGOs to support migrants of Mumbai and Delhi with food packets and rations.
Ventilators were donated to government hospitals in Maharashtra, and hundreds of PPE kits and masks were distributed to healthcare workers.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/27072020/ambuja-cement-shares-q2-results/