FINANCIAL PLANNING AND FORECASTING AT AMBUJA CEMENT

Abstract

Financial planning and forecasting are vital instruments for sustainable corporate growth and strategic resource allocation. This study examines the financial planning and forecasting practices at Ambuja Cements Limited, one of India's premier cement manufacturers. The research analyses key financial parameters including revenue trends, capital expenditure planning, working capital management, profitability forecasting, and budget variance analysis over five financial years (FY 2019–20 to FY 2023–24). Secondary data sourced from annual reports, financial statements, and industry publications form the empirical base. Tools including ratio analysis, trend analysis, and common-size statements are employed to interpret data. Findings reveal a consistent upward revenue trajectory with strong EBITDA margins, disciplined capital allocation, and effective short-term financial planning. However, challenges in raw material cost volatility and energy price fluctuations affect forecast accuracy. The study concludes that advanced analytical tools and integrated financial modelling can significantly enhance Ambuja Cement's forecasting precision and strategic planning effectiveness.