Ambuja Cements announced on Monday that its second quarter ended in September 2024 had a standalone net profit of Rs 501 crore, a 22% year-over-year (YoY) decline from the Rs 644 crore recorded in the same quarter last year.

In contrast, revenue from operations climbed 6% year over year to Rs 4,213 crore during the July–September 2024 period from Rs 3,970 crore during the previous year.

In the September quarter, operating EBITDA decreased 12% year over year to Rs 683 crore, while margins dropped to 16.2% within the same time frame.

"We are happy to report again another consistent performance that is in line with our expansion plan and is establishing new efficiency standards.As the cornerstones of our business, we remain committed to innovation, digitization, customer satisfaction, and ESG," stated Ajay Kapur, Whole Time Director & CEO, Ambuja Cement.

In terms of operations, the sales volume increased by 9% year over year to 14.2 million tons, while the cost of kiln fuel decreased by 13% to Rs 1.59 per thousand kcal. This was made feasible by the overall decline in fuel basket costs as well as the greater use of inexpensive imported Petcoke and E-auction coal.

Ambuja declared during the quarter that it had signed a legally binding contract with Orient Cements to purchase 46.8% of the company. The company hopes to reach 100+ MTPA capacity by the end of current fiscal year when the acquisition is completed successfully.

The operating cost for the quarter was Rs 4,497 PMT, a 4% YoY improvement. At the end of the second quarter, the company's total cash and cash equivalents were Rs 10,135 crore, which allowed it to accelerate future growth.

Ambuja's consolidated business-level working capital is 33 days, which shows how quickly the money in receivables and inventory may be unblocked. "With our strong foothold across the nation, we are further expanding our footprint in new geographies in line with our vision," Kapur stated.

Ambuja Cement's stock is up almost 5% on Monday, trading at Rs 578.8 on the NSE.