Ambuja Cement Operating EBIT growth of 25% for the full year 2021

Full year 2021

• Net sales higher by 23%, driven by volume growth and product mix
• EBIT grows by 25%

Quarter 4, 2021

• Net sales higher by 6%
• EBITDA for the quarter impacted by unprecedented increases of fuel prices

Standalone Audited financial Results for the quarter and year ended 31st December 2021

* Including exceptional expenses of ₹ 65.69 crore for the December 2021 quarter and year.

Mr. Neeraj Akhoury, CEO, Holcim India and Managing Director & Chief Executive Officer, Ambuja Cements Limited said “Ambuja delivered a strong full year performance with an EBIT growth of 25% for the full year backed by strong performance in volume, product mix and operational efficiencies combined with significant acceleration in volumes under the Master Supply Agreement with ACC.

During the year we delivered our highest ever sales volume supported by stabilization of operations at our new plant in Rajasthan. However, the December 2021 quarter was unfavorably impacted by very steep escalation in fuel prices coupled with subdued demand in multiple regions.

The Board has approved in principle an investment of ₹ 3,500 Crore for a cement grinding expansion plan of potential 7.0 million tons across our existing grinding units at Sankrail and Farakka and at a greenfield location at Barh, in Bihar. This is supported by a 3.2 million tons brownfield clinker expansion at our existing integrated plant in Bhatapara, Chhattisgarh.

On the ESG front, we are the first cement company globally to make it to the “A” list in the CDP Water Security 2021 which demonstrates our water stewardship. The positive changes made through our sustainability efforts positioned us 5th position in the Dow Jones Sustainability Index (DJSI) 2021 among construction materials companies globally”.

Financial Performance for the year and quarter ended December 2021

Net Sales for the year stood at ₹ 13,794 Crore compared to ₹ 11,175 Crore in the previous year, registering a growth of 23% year on year supported by strong growth in sales volumes and product mix.

Efficiencies delivered under our flagship ICAN program partly mitigated the impact of cost headwinds. However, total operating cost per ton increased by 3% during the year. Operating EBIT stood at ₹ 2,656 Crore compared to ₹ 2,125 Crore, recording a strong growth of 25% year on year.

Net Sales during the quarter stood at ₹ 3,679 Crore compared to ₹ 3,468 Crore in the corresponding quarter of the previous year, registering a growth of 6% year on year. Operating EBIT stood at ₹ 398 Crore.

We are continuously working towards the development of our communities based on their needs in the areas of water resource management, skill as well as agri- livelihood development, women empowerment, community health and education for all.

New Expansion Project

The Board has approved in principle an investment of ₹ 3,500 Crore for a cement grinding expansion plan of potential 7.0 million tons across our existing grinding units at Sankrail and Farakka and at a greenfield location at Barh, in Bihar. This is supported by a 3.2 million tons brownfield clinker expansion at our existing integrated plant in Bhatapara, Chhattisgarh.

Dividend

The Board of Directors have recommended a dividend on equity shares of ₹ 6.30 per equity share.

Consolidated Audited Financial Results for the quarter and year ended December 2021