Concrete

Ambuja delivers robust performance in a challenging quarter

Published

5 years ago

October 19, 2021

admin

EBITDA growth of 61% for the quarter
78% rise in Operating EBIT with EBIT margin expansion of 310 basis points backed by strong growth in volumes and efficiency gains
The greenfield integrated plant at Marwar Mundwa to commence operations in the third quarter of 2021
Embarking on the next step of our growth journey with cement capacity expansion of 1.5 million tonne at Ropar (Punjab)
Health and Safety remains key priority; focus on vaccination drives

Neeraj Akhoury, CEO India, Holcim and Managing Director and CEO Ambuja Cements Limited said:

??mbuja registered a strong performance in the second Quarter of 2021 with 78% growth in operating EBIT and 310 basis points expansion in the EBIT margin. This performance resulted from strong growth in sales of premium products and successful execution of efficiency improvement programs which has partly been impacted by rising energy and raw material costs. Synergies under the master supply agreement have significantly benefited both Ambuja and ACC as we leverage our national footprint.

Along with delivering robust financial performance, we remain committed to be best in class in sustainability goals. Our waste heat recovery systems projects are progressing as per plan and along with reduction in emissions will also reduce our dependence on thermal energy. With support of our parent, Holcim, we are focused on conserving natural resources by utilising alternative fuels and raw materials. We have used about 46 lakh tonnes of waste-derived resources in the first six months of 2021. Our increased focus on sustainability, digitisation and innovation is enabling us to reach closer to our global goal of net zero emissions.??/p>

Covid-19 update

The second wave of Covid-19 in the country was managed proactively by the company. We continue to ensure strict adherence to government guidelines across all our plants and offices. Our 24×7 Covid-19 crisis control room support is enhanced with a third party medical services provider for close end to end support to our people across the country. We have also facilitated vaccination drives wherein more than 97% of our employees, dependents and third party workers have been covered. Our plants are operating under strict Covid-19 protocols in line with the current risk which is being dynamically assessed on a daily basis.

Financial performance for the quarter ended 30 June 2021

Net Sales during the quarter stood at Rs 3,342 cr compared to Rs 2,145 cr in the corresponding quarter of the previous year, resulting in a growth of 56%. Premium products volume grew at 69% compared to the same period last year.

Total operating cost per ton sees a marginal decline, despite continuous headwinds faced on account of rising input costs. The operational efficiency programs in the plants along with logistics efficiencies partly mitigated the impact. EBITDA during the quarter at Rs 960 cr showed a growth of 61% and Operating EBIT at Rs 829 cr showed a robust growth of 78%.

Ambuja helped 8,347 customers to save about 260 lakh litres of water at construction sites by providing value added services such as modular curing, concrete mix proportions, and rain water harvesting systems.

New Expansion Project

In line with our expansion plans, the board has approved 1.5 million tonne cement capacity expansion at the existing grinding unit at Ropar in Punjab.

Consolidated unaudited financial results for the quarter and half year ended 30 June 2021

EBITDA higher by 63%
Margin expansion for the quarter by 180 basis points
Growth in Operating EBIT is 87%

Performance of ACC Limited, a Material Subsidiary

Net Sales during the quarter increased to Rs 3,810 cr and recorded a growth of 51% vs previous year. EBITDA during the quarter up by 65% vs previous year at Rs 869 cr, with an EBITDA margin expansion of 200 basis points. The company also witnessed strong delivery on cost efficiency actions under project ??arvat??across cost levers combined with healthy working capital despite volatility due to the second wave of COVID 19.

Outlook

GDP for fiscal 2021-2022 is projected to grow at the rate of 9.5% and is expected to remain strong going forward. The measures announced by the government including higher spending for infrastructure development will support revival of economic activity in general and lead to higher cement demand. With the operational efficiency programs and expansion projects, the company feels confident to capture the future growth.

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Concrete

UltraTech’s Kukurdih unit runs fully on green energy

The Chhattisgarh plant has met 100 per cent of its electricity needs through green energy since April 2026.

Published

3 days ago

October 1, 2026

admin

UltraTech Cement’s Kukurdih Cement Works in Chhattisgarh has met 100 per cent of its electricity requirement through green energy every month since April 2026. Commissioned in 2024, the integrated cement manufacturing unit has an installed grey cement capacity of 3.3 million tonnes per annum.

The plant meets its electricity requirement through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS). UltraTech said the combination enables the unit to meet its power needs through green energy while maintaining operational reliability.

Since April 2026, nearly a third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirement. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation.

The company is also progressively deploying Battery Energy Storage Systems (BESS) across its manufacturing network to support greater integration of renewable energy. UltraTech said it has not invested in new captive thermal power capacity at its integrated units, including greenfield projects and brownfield expansions, for more than 10 years.

As of Q1FY27, UltraTech’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable capacity from solar, wind and hybrid sources, and 434 MW of WHRS capacity.

Under its RE100 commitment, the company aims to increase the share of green power in its total power mix to 85 per cent by 2030 and 100 per cent by 2050.

Concrete

Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected

Cement prices rose in September as companies weighed further increases.

Published

3 days ago

October 1, 2026

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Cement companies may seek to raise prices by Rs. 5 to Rs. 20 per bag across most markets in October, although the ability to sustain the increases will depend on demand recovery and dealer acceptance, according to a report by Centrum Broking. The outlook follows a pickup in pricing momentum during September after largely stable prices in July and August.

The all-India average trade price increased by Rs. 7 per bag month-on-month to Rs. 356 in September. Centrum Broking’s channel checks indicated gains across both trade and non-trade segments, with non-trade prices recording sharper increases in most markets. However, higher company billing rates were not fully passed on to customers in several regions because dealers continued selling at earlier prices to meet quarter-end volume targets.

The brokerage said demand weakness in Q2FY27 was less pronounced than the usual seasonal trend, with construction activity improving in several markets towards the end of the quarter. Demand remained range-bound across several markets in July and August, while September produced mixed regional trends. Higher rainfall affected activity in some areas, whereas lower rainfall supported construction work elsewhere.

South India recorded the largest price increase in September, at Rs. 11 per bag, followed by West India at Rs. 9. Central, East and North India each reported increases of Rs. 5 per bag. Despite the September recovery, the average all-India trade price for Q2FY27 stood at Rs. 351 per bag, down Rs. 1 sequentially, as weaker pricing in July and August offset the later gains.

Centrum Broking said the success of any October increases would depend on the pace of demand recovery and dealers’ willingness to accept higher prices. Fuel prices have also risen sharply in recent weeks, making the implementation and sustainability of price increases a key factor for the cement industry’s pricing outlook.

Concrete

Andhra Pradesh Clears Rs. 30 bn My Home Cement Plant

Project receives incentives of up to Rs. 11.29 bn from state

Published

4 days ago

September 30, 2026

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The Andhra Pradesh government has approved a greenfield cement project worth Rs. 30 bn by My Home Industries, along with incentives of up to Rs. 11.29 bn. The decision comes amid a political controversy in Telangana involving allegations about landholdings associated with My Home Group.

According to an Industries and Commerce Department order issued on September 25, 2026, the project is expected to create 2,000 jobs and begin commercial production by March 2029. The proposed facility will have capacity to produce 3.5 MTPA of clinker and 3.5 MTPA of cement.

The total investment includes fixed capital investment of Rs. 25.97 bn, pre-operative expenses of Rs. 2.23 bn, contingencies of Rs. 1.26 bn and working capital margin of Rs. 540 mn. The incentive package is capped at Rs. 11.29 bn, equivalent to up to 43.48 per cent of fixed capital investment, subject to completion of the committed investment by March 2029.

The package includes a capital subsidy of 39 per cent of eligible fixed capital investment, capped at Rs. 9.43 bn, payable over 10 years from the start of commercial production. It also provides reimbursement of Rs. 1 per unit on electricity purchased from distribution companies for 10 years, subject to a ceiling of Rs. 1.86 bn. A further incentive equivalent to 2 per cent of fixed capital investment is linked to the creation of the committed jobs and other policy conditions.

The state has approved the allotment of 27.19 acres through the Andhra Pradesh Industrial Infrastructure Corporation at actual cost. The project also involves land linked to two temples and the realignment of a canal across approximately 9.93 acres, with conditions requiring alternative temple facilities and company-funded infrastructure work. Telangana Chief Minister A. Revanth Reddy has separately raised allegations concerning land associated with My Home Group, including 2,463 acres near Shamshabad. The allegations remain subject to verification through official records and any investigations.