Acquisitions strengthen Ambuja volume growth

ACQUIRED ASSETS LIFT SCALEAND PRICING IN Q2, SAY ANALYSTS

- URVI MALVANIA

AMBUJA CEMENTS’ Q2 results show that the integration of Sanghi Industries, Penna Cement and Orient Cement has started reflecting meaningfully in volume growth, realisations and operating costs, analysts said.

The company posted its highest-everQ2 sales volume at 16.6 million tonne,up 20%yoy — nearly five times the industry growth — which brokerages attributed to the ramp-up and consolidation of the acquired assets.

“Orient, Penna and Sanghi have moved ~100% into Adani Cement brands,’ analysts from Prabhudas Lilladher noted, adding that the shift has strengthened both Ambuja’s distribution reach andits ability to command higher pricing on the acquired capacities.