The shares of the leading cement manufacturer and supplier gained up to 1 percent after the company came into agreement with My Home Industries Private Limited worth Rs 413 crore.
With a market capitalization of Rs 1.21 lakh crore, the shares of Ambuja Cements Ltd were trading at Rs 613.50 per share, increasing around 0.63 percent as compared to the previous closing price of Rs 609.65 apiece.
According to the company filing, Ambuja Cements Ltd entered into a definitive agreement with My Home Industries Private Limited for the acquisition of its 1.5 MTPA Cement Grinding Unit in Tuticorin, Tamil Nadu. worth Rs 413 crore.
Looking into Ambuja Cements Ltd’s performance, revenue increased by 3 percent from Rs 7,907 Crore in Q3FY23 to Rs 8,129 Crore in Q3FY24. During the same duration, net profit increased by 123 percent from Rs 488 crore to Rs 1,090 crore.
Additionally, the company expanding its cement capacity by 32 MTPA under implementation at various stages taking the total capacity to 110 MTPA (80% of 140 MTPA targeted capacity by FY 2028).
The company’s profitability measures show an incline in return on equity (RoE) from 7.44 percent in FY 21-22 to 8.14 percent in FY 22-23, while, during the same period return on capital employed (RoCE) incline from 8.84 percent to 10.48 percent. In contrast, the net profit margin (NPM) was 7.69 percent in fiscal year 22-23.
Ambuja Cements Ltd’s recent shareholding pattern, The Promoters of the company own 66.74 percent while Retail shareholders own a 7.72 percent stake in the company, and Foreign Institutional Investors own an 11.10 percent stake.
Ambuja Cements Ltd. is a significant cement company in India. It is part of the Adani Group. Ambuja Cement now has a cement capacity of 31 million tonnes and operates six integrated cement production facilities and eight cement grinding units around the country.
Written by:- Abhishek Singh
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