New Delhi:

Ambuja Cements Ltd on Wednesday reported a multifold increase in consolidated net profit at Rs 987.24 crore for the quarter ended on September 30, on reduction in operating cost.

The company, now part of the Adani Group, had clocked a net profit of Rs 51.30 crore in the July-September quarter a year-ago, according to a regulatory filing by Ambuja Cements.

Its consolidated revenue from operations was up 4.10 per cent to Rs 7,423.95 crore during the quarter under review. It was Rs 7,131.39 crore in the corresponding period of the last fiscal year.

“This could be achieved with high focus on cost leadership, business synergies and operational excellence,” said an earning statement from Ambuja Cements.

The consolidated results of Ambuja Cements include the financial performance of its step-down firm ACC Ltd, in which it owns around 51 per cent stake.

Ambuja Cements’ total expenses were down 8.52 per cent at Rs 6,564.28 crore, from Rs 7,175.81 crore a year ago.

Its total consolidated revenue in the September quarter was up 9.1 per cent to Rs 7,900 crore.

On a standalone basis, Ambuja Cements reported a four-fold jump in net profit to Rs 643.84 crore in the July-September quarter, as against Rs 138.91 crore in the year-ago quarter.

Its standalone revenue from operations increased 8 per cent to Rs 3,969.79 crore, as against Rs 3,675.61 crore earlier.

Shares of Ambuja Cements Ltd on Wednesday were trading at Rs 410.55 on BSE, down 3.29 per cent from previous close. 

Representational image only.
| Photo Credit: Reuters

Adani Cement, through Endeavour Trade and Investment Limited, has announced the completion of its refinancing programme for acquisition of debt taken for Ambuja and ACC, through a $3.5 billion financing package, raised from a clutch of international banks. 

“This facility will result in an overall cost saving of $300 million for the Adani Cement vertical,“ Adani Group said in a statement. Adani Family had acquired Ambuja Cement & ACC in a $6.6 billion deal last year.

 “The $3.5 billion facility marks the continued execution of the capital management plan outlined in September 2022 that will see step wise planned deleveraging of Adani Cement. With cement vertical Net Debt to EBITDA now under 2x,” the statement said.

The transaction was financed by facilities aggregating to have $3.5 billion from 10 international banks. DBS Bank, First Abu Dhabi Bank, Mizuho Bank and MUFG Bank acted as Mandated Lead Arranger and Bookrunners and Underwriter to the transaction. 

In addition, Barclays Bank PLC, BNP Paribas, Deutsche Bank AG, ING Bank, Sumitomo Mitsui Banking Corporation and Standard Chartered Bank acted as Mandated Lead Arrangers and Bookrunners for the transaction.