Displaying items by tag: growth
India: ACC recorded sales of US$632m in the first quarter of the 2024 financial year, which began on 1 April 2023. This corresponds to a year-on-year rise of 16% from US$545m. The Economic Times newspaper has reported that ACC increased its cement and clinker sales volumes by 23% to 9.4Mt. The producer reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$103m, up by 77% year-on-year. It attributed this to lower costs, including fuel costs, and increased operational efficiencies. Its net profit more than doubled during the quarter, to US$56.6m from US$27.6m in the first quarter of the previous financial year.
ACC said "The cement industry is in positive cycle of demand, as well as cost factors. This comes at the most apposite time, when the company is in a transformation phase, buoyed by synergies with the group. We expect the positive trend of industry to continue in the second quarter of 2023."
Gujarat-based conglomerate Adani Group completed its acquisition of ACC on 16 September 2022. It subsequently began to relocate 'significant roles' from the cement producer's headquarters in Mumbai, Maharashtra.
Cemex's first-half revenues rise in 2023
27 July 2023Mexico: Cemex recorded first-half 2023 revenues of US$8.6bn, up by 11% year-on-year from US$7.76bn for the first half of 2022. The group's operating earnings before interest, taxation, depreciation and amortisation (EBITDA) totalled US$1.69bn, up by 18% from US$1.4bn. The group said that the results bring it close to achieving its aim of restoring its 2021 EBITDA margins.
Chief executive officer Fernando A González said “The success of our pricing strategy, bolt-on investments and Urbanisation Solutions business, as well as decelerating cost inflation, are driving what is shaping up to be a very strong year for our company." He continued "Beyond our financial results, we continue progressing on the ambitious carbon reduction and circularity commitments of our Future in Action programme, remaining on the path to becoming a net zero CO2 company by 2050.”
India: Shree Cement has pulled out of the race to acquire a 40 – 70% stake in Sanghi Cement for US$205 – 369m. The Financial Express newspaper has reported that Shree Cement said that it will shift its short-term focus to ‘internal expansion.’
Sanghi Cement operates 6.1Mt/yr of cement capacity and a 143MW captive power plant in Western India. It has debts of US$219m.
ACC to increase cement capacity by 16Mt/yr by 2028
20 July 2023India: Adani Group subsidiary ACC says that it will add 16Mt/yr-worth of new cement capacity in the five years up to the end of the 2028 financial year in March 2028. CEO Ajay Kapur said that the producer may implement the expansion plan in as short a time as two years. Reuters has reported that the company expects cement demand in India to rise by 7 – 8% between the 2023 financial year and the 2028 financial year.
Raysut Cement reduces loss in first half of 2023
17 July 2023Oman: Raysut Cement reported a net loss of US$4.52m during the first half of 2023. This corresponds to a drop of 67% year-on-year from US$13.8m in the previous first half. The Oman Daily Observer newspaper has reported that the producer attributed the loss reduction to its implementation of operational efficiency and cost reduction measures, as well as growth in sales volumes, during the latest half.
Oman: Oman Cement recorded sales of US$95.6m during the first half of 2023, Reuters has reported. The figure corresponds to a year-on-year rise of 5.1% from US$90.9m in the first half of 2022. The producer’s net profit after tax also rose, by 31% year-on-year to US$10.9m from US$8.31m.
India: NCL Industries produced 751,000t of cement during the first quarter of the 2024 financial year, up by 23% year-on-year from 610,000t in the first quarter of the previous financial year. Hindu BusinessLine News has reported that the company’s sales volumes also rose by 23% during the quarter, to 742,000t from 603,000t.
India: ICRA says that all-Indian cement production capacity will rise by 6% year-on-year to 610Mt/yr during the 2024 financial year. The ratings agency forecasts that the Indian cement industry will invest US$14.6bn over the four years up to the end of the 2027 financial year to expand its capacity by 26% to 725Mt/yr. The Financial Express newspaper has reported that costs of cement production fell in the second half of the 2023 financial year, which ended on 31 March 2023. The trend is expected to continue throughout the 2024 financial year. Meanwhile, ICRA has forecast domestic demand growth of 7 - 8% year-on-year in the 2024 financial year.
Oman: Huaxin Cement informed the Muscat Stock Exchange of its intent to buy a further 5.1% stake in Oman Cement on 3 July 2023. Zawya News has reported that this would increase the China-based group's stake in Oman Cement to 64.7%. It acquired its existing 59.6% in the producer for US$193m earlier in 2023, but subsequently revised the price to US$200m.
India: Ambuja Cements and its subsidiary ACC have transitioned to reporting their results in line with the (April - March) Indian financial year. As such, they have published 15-month results for 2022 and the first quarter of 2023. During the period, Ambuja Cements reported sales of US$4.75bn, up by 34% year-on-year from US$3.53bn. Its cement volumes rose by 28% to 68Mt, while its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 11% to US$714m. Meanwhile, ACC recorded sales of US$2.71bn, up by 38% from US$1.97bn in 2021. Its cement volumes rose by 31% to 37.9Mt, while its EBITDA fell by 30% to US$275m.
ACC announced its goal to become India's 'most profitable cement company.' To realise this, the company will implement a three-pronged strategy of capacity expansion, efficiency improvements and development of its distributor and dealer network. Under the capacity expansion heading, the producer will double its production capacity through the construction of new cement plants and the expansion of existing ones. In this, it will lay special emphasis on securing supplies of renewable energy and supplementary cementitious materials, including fly ash from its own power plant segment. The company noted that it recently secured access to 1Bnt-worth of new limestone reserves in Maharashtra, Odisha, Karnataka and Rajasthan. It will also seek to increase its coal production to avoid the rising cost of imports.
In the 2024 financial year, the government of India plans to invest US$11.4bn in the construction of new housing, roads and sanitation infrastructure nationally. Ambuja Cements has forecast an increase in domestic cement consumption of 6 - 8% to over 390Mt/yr. It expects Indian cement production to rise by 8 - 10% year-on-year to 390Mt in the 2024 financial year.