Ambuja Cement Announces Dividend Of 125%, Reports A Stellar Performance For Q4FY23

An Adani group company named Ambuja Cements has announced a dividend for the quarter along with its stellar Q4FY23 performance results. The company's standalone numbers exhibit strength through consistent, significant sequential earnings, before, interest, tax, depreciation and amortisation (EBITDA) growth by 35% at Rs 962 crore, led by excellence in operations and business synergies.

Through the subsequent press releases filed by Ambuja Cement on the securities exchange, the company posted a growth of 3% net revenue on quarterly basis at Rs. 4,256 crore. The growth in revenue is despite the adverse impact on volumes from halting of the operations at the Himachal Pradesh plants for 50 days.

The cost reduction by Rs 228 PMT to Rs 4,295 PMT is expected to further reduce on cost optimization and leveraging synergies from adjacency businesses of the group. EBITDA PMT achieved in four digits, quarter-on-quarter basis jumped to Rs1,192 PMT from Rs 927 PMT and profit after tax rose to Rs 502 crore as compared to Rs 369 crore last quarter.

Mr. Ajay Kapur, Whole Time Director & CEO, Ambuja Cements said, "We are pleased to report another strong performance of Ambuja Cement which has been driven by our strategic initiatives on business excellence, operational efficiencies and synergies. Our focus on operational excellence and cost optimisation measures has yielded improved profitability."

Further, the company's improvement in consolidated cash & cash equivalent by Rs 2,076 crore, which stands at Rs. 11,530 crore augurs well. While the company accelerates its growth plans, while continuing to remain remain debt free.

Kapur adds, We have been able to maintain our growth trajectory and further strengthen our position in the market. With the rise in construction activities across our markets, we see the continuation of the elevated demand and strong volumes in the coming quarters as well.

In terms of outlook he said, that the, "Government's increased spending on infrastructure development, particularly roads, railways, affordable housing and other schemes as announced in the recent Union Budget is encouraging." He also said that, the company is optimistic and maintain a positive outlook that the government's timely and pro-active measures will open more opportunities for the cement sector, that will stimulate cement demand and enhance
economic growth."

Lastly, the company announced that its board of directors have recommended a dividend on equity shares of Rs 2.50 per share (125%) with a face value of Rs 2/- each (fully paid-up) for the financial year ended March 31, 2023. The company board has fixed the record date as Friday 07th July 2023 for the purpose of determining the entitlement of dividend.

The current market price of Ambuja Cement stock is Rs 394.40 per share, it has fallen down by 0.48% over previous day's closing. Its 52-week high is at Rs 598.15 per share, while 52-week low is at Rs 315.30 per share.