The shares of leading cement manufacturers have fallen 2 percent despite the company announcing a Rs 1,600 crore investment to build 6 MTPA cement grinding unit in Bihar.
Ambuja Cements Ltd has a market capitalization of Rs 1.58 lakh crore, the shares were trading at Rs 644.55 per share, decreasing around 1 percent as compared to the previous closing price of Rs 650.85 apiece.
Event explanation:-
Today the company shares have seen a bearish movement despite Ambuja Cements Ltd announced a Rs 1,600 crore investment to build a 6 MTPA cement grinding unit in Bihar. However, the project will be implemented in three phases with the first phase of 2.4 MTPA at an investment of Rs 1,100 crore and aim to be commissioned by December 2025.
The project will meet Bihar’s growing infrastructure needs, aligning with priorities outlined in the recent Union Budget, and aim to contribute approximately ₹ 250 crore per year to the state’s fiscal revenue and create 250 direct jobs and 1000 indirect jobs for the state.
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Financial performance:-
Looking forward to the company’s financial performance, revenue plummeted by 5 percent, from Rs 8,713 crore in Q4FY23 to Rs 8,311 crore in Q4FY24. During the same period, net profit decreased significantly by 30 percent, from Rs 1,135 crore to Rs 790 crore.
Recent Acquisition:-
Recently, With the acquisition of PCIL, Ambuja Cements added 14 MTPA of cement grinding capacity and 10.3 MTPA of clinker capacity to its current operations. By doing so, the company’s overall capacity will be roughly 89 MTPA. With this, the corporation would have met its aim of generating 140 MTPA by 2028.
Company Profile:-
Ambuja Cements Limited manufactures and sells cement and associated goods. The company’s products are Ambuja Cement, Ambuja Kawach, Ambuja Plus, Ambuja Cool Walls, Ambuja Compocem, Ambuja Buildcem, Ambuja Powercem, Ambuja Railcem, and Alccofine.
Written by:- Abhishek Singh
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