00:00Amboja Cements has started Financially 27 with a disciplined and resilient performance, delivering stronger profitability, improved operating margins, improved operating
00:13and cost efficiency, and continued strategic execution despite a challenging operating environment.
00:19Cement demand remained stable, supported by infrastructure, housing, and construction activity, while industry profitability faced pressure from the higher imported
00:31fuel prices, elevated freight costs, and the overall geopolitical tensions in West Asia.
00:39With focus on cost leadership on quarter-on-quarter basis, we have reduced cost by Rs. 206 per metric ton,
00:49which led to improvement in EBITDA by Rs. 196 per metric ton.
00:55This is after absorbing cost of Rs. 110 per metric ton on account of the West Asia geopolitical situation.
01:05Our strategy remains focused on creating sustainable value ahead of volumes.
01:11Hence, we used the opportunity to maintain 12% of our kiln capacity in terms of scheduled maintenance, absorbing additional
01:20cost of Rs. 50 per metric ton,
01:23while we built up clinker inventory of 1 month and coal inventory of almost 3 months, giving a competitive edge
01:31in second quarter.
01:33Trade sales increased to 78 per metric ton, supported by growth in premium products, which stands now at 34%
01:41of the trade sales,
01:42while blended cement sales remains robust at 85%, thereby helping to improve on cost on account of lower clinker factor,
01:52which has now reduced from 67% to 64%, almost 3% reduction in the clinker factor.
01:59Our 109 million tons of capacity integrated cement platform is aimed at converting scale into higher productivity,
02:09stronger profitability, and superior returns on capital.
02:13Regionally, North continued to lead profitability, East and Central recorded significant improvement,
02:20West remained resilient, and in selected southern markets, we prioritized profitability over incremental volumes.
02:30We are firmly on track to deliver a Rs. 250 per metric ton cost reduction to achieve our guidance of
02:37Rs. 4,250 per metric ton for FY27.
02:42Our expansion program to increase our install capacity to 119 million tons, by end of FY27, it remains on schedule.
02:54Trial runs have commenced at Dahej, Salai Banwa, Batinda, Jodhpur, while Kalamboli in Navi Mumbai,
03:03Varsali Ganj, they will have the trials in Q2 and Q3 respectively, Maratha will get commissioned next year.
03:12Alongside expansion, we remain focused on debottlenecking, acid reliability, operational stabilization, and productivity enhancement.
03:21The integration of Penna Cement and Sanghi Industries is progressing quite well.
03:25Our AI-enabled CENOC, which is Cement Integrated Network Operating Center, the Digital Twin Initiatives, Master Data Management Platform,
03:36the Advanced Analytics, and the Intelligent Plant Automation are improving the reliability of manufacturing, logistics visibility, commercial execution, and decision
03:46-making.
03:47Our partnership with LILAC marks an important milestone in advancing commercial-scale low-carbon cement production.
03:58Continued reduction in clinker factor, expansion of renewable energy capacity, Green Pro certification by CII,
04:06Digital BRSR, and GRIA certification recently across our blended cement portfolio reinforces our commitment to sustainable construction solutions.
04:17On the quarterly financial performance, our revenue stands at Rs. 9,500 crores, operating EBITDA of Rs. 1,589 crores,
04:27EBITDA margin which has improved by 331 basis point to now 16.7%, EBITDA per metric ton which is now
04:35at 931 compared to 735 last quarter,
04:38our net cost has reduced by Rs. 206 per metric ton sequentially, profit after tax stands now at Rs. 660
04:46crores, net worth at whopping 72,000 crores almost, cash-in-cash equivalent of almost 850 crores, balance sheet remains
04:54debt-free with AAA and A1 plus credit ratings.
04:59Looking ahead, India's long-term demand fundamentals remain compelling, supported by infrastructure development, urbanization, industrialization, logistics investments, and housing demand.
05:12Our ambition is to build one of the world's most efficient, technologically advanced, and sustainable building materials company.
05:22Amen.
05:26Thank you for coming.
