Q4 2024 Ambuja Cements Ltd, ACC Ltd and Sanghi Industries Ltd Earnings Call Transcript
Key Points
- Ambuja Cements Ltd (BOM:500425) achieved the highest-ever clinker and cement sales for the last 20 quarters in Q4 FY24.
- The company reported a 12% year-over-year increase in revenue, driven by a strong focus on micro market management and expansion of the dealer network.
- Operational costs per ton declined by 9%, with significant reductions in energy and transportation costs.
- EBITDA grew by 37% year-over-year, with EBITDA per ton increasing by 17% and margins expanding by 3.5% to 19.1%.
- The company remains debt-free and has a strong cash position, with consolidated cash and cash equivalents standing at INR 24,338 crores as of April 2024.
- Despite the positive financial performance, the company faces uncertainties related to future developments and market conditions.
- There are concerns about the timely execution of the clinker expansion plans, as environmental clearances are still awaited for some projects.
- The company's strategy to achieve a 20% market share by FY28 may require high teens growth in sales volume, which could be challenging in a competitive market.
- The integration and stabilization of newly acquired assets, such as the grinding unit at Tuticorin and Sanghi Industries, may take time and resources.
- The company's cost reduction targets, including a INR 500 per ton reduction by FY28, are ambitious and depend on successful execution of various initiatives.
Ladies and gentlemen, good day, and welcome to the earnings conference call for the quarter and year ended March 31, 2024 of Ambuja Cements limited, ACC limited and Sanghi Industries Limited hosted by PhillipCapital India Private. (Operator Instructions) This conference is being recorded.
I now hand the conference over to you, Mr. Vaibhav Agarwal from PhillipCapital India Private Limited. Thank you, and over to you sir.
Yeah, Thank you, Michel, and good afternoon, everyone. On behalf of PhillipCapital India Private Limited We welcome you to the earnings call for the quarter and full year ended March 31, 2024 for Ambuja Cements Limited, ACC Limited and Sanghi Industries Limited.
I would like to mention on behalf of Ambuja Cements and subsidiaries that certain statements that may be made or discussed on this conference call may be forward-looking statements that relate to future developments and which are based on current management expectations.
These statements are
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