Ambuja Cements Q4FY25 results: Profit slips 9% despite sales volume boost

Adani family co crosses 100 mtpa capacity milestone

Ambuja Cements’ consolidated profit for the January to March quarter (Q4) of 2024-25 (FY25) declined 8.98 per cent year-on-year (Y-o-Y) to ₹956.3 crore despite a 13 per cent growth in annual sales volume (cement and clinker). The profit numbers, however, beat the Bloomberg analysts’ poll estimate of ₹735.4 crore.

 

The Adani family-owned company’s Q4FY25 sales volume grew to 18.7 million tonnes, the highest in one quarter in the company’s history. The share of premium cement products in the company’s sales stood at 29.1 per cent, up 5.3 per cent Y-o-Y.

 

The company’s revenue from operations for the quarter was up 11.6 per cent Y-o-Y to ₹9,802.5 crore. The revenue missed an earlier estimate of ₹9,903.2 crore. The company’s total expenses for the quarter stood at ₹8,821.7 crore, up 13.9 per cent Y-o-Y.

 

 

Vinod Bahety, whole-time director and chief executive officer, Ambuja Cements, said, “This year marks a historic milestone in the journey of Ambuja Cements as we cross the 100 mtpa (million tonnes per annum) capacity. We have ongoing organic expansions at various stages across the country, which will help us achieve 118 mtpa capacity by FY26, a significant step, bringing us closer to our goal of 140 mtpa by 2028.”

 

Ambuja’s operating earnings before interest, taxes, depreciation, and amortisation (Ebitda) in Q4FY25 stood at ₹1,868 crore, up 9.95 per cent Y-o-Y. Its Ebitda margin, however, declined marginally to 18.9 per cent in Q4FY25 from 19.1 per cent in Q4FY24. The Ebitda surpassed the Bloomberg estimate of ₹1,644.6 crore.

 

The company’s revenue for FY25 stood at ₹33,697.7 crore, up 2.71 per cent Y-o-Y. Its profit during the same period increased 16.64 per cent to ₹4,167.43 crore. The company’s sales volume during the financial year grew 10.14 per cent Y-o-Y, to 65.2 million tonnes.

 

“Higher volume, along with improved operational parameters, resulted in growth in all business parameters,” the company stated.

 

Sequentially, the company’s revenue increased 16.5 per cent but profit dipped 54.8 per cent. In Q3FY25, profit had grown to ₹2,115 crore amid one-time tax-related reversals and receipt of certain government incentives.

 

In FY25, agility and change in the fuel basket helped reduce kiln fuel cost by 14 per cent from ₹1.84 to ₹1.58 per Kcal, the company stated. Meanwhile, the logistics costs were reduced by 2 per cent to ₹1,238/tonne.

 

As of Q4FY25, the company’s cash and cash equivalents are at ₹10,125 crore, with a net worth of ₹63,811 crore, up ₹12,969 crore during the year. The company remains debt-free.

 

“We have also identified nine additional grinding unit projects for which land acquisitions and statutory approvals are under process, which shall enable us to reach 140 million tonnes by FY28,” Bahety said during the company’s earnings call on Tuesday.

 

Bahety said that he is seeing a healthy price trend across India so far in FY26, in comparison to Q4FY25. “There’s a good momentum backed by a buoyancy in demand in the government capex (capital expenditure) and overall consumption markets of cement,” he added.

 

“Based on demand growth trends in H2FY25 (second half of FY25), it is projected that cement demand growth in India during FY26 will continue to benefit from the momentum gained by government spending on infrastructure and construction activities and pro-infra and housing Budget. Growth for FY26 is anticipated to range between 7 per cent and 8 per cent,” the company said.

 

Ambuja’s peer UltraTech Cement reported a sales growth of 17 per cent and a profit growth of almost 10 per cent amid improved realisations. Meanwhile, Dalmia Bharat’s sales declined 3 per cent Y-o-Y but profit grew 38.1 per cent amid cost reduction initiatives.

 

Bahety informed that the company is bidding for coal mines through auctions conducted by the Government of India to meet the company’s requirements as it aims to maximise captive coal consumption. “A higher share of coal from captive mines and opportunistic buying of imported petcock will help us reduce our overall basket of fuel and therefore fuel cost,” he added.

 

Additionally, Ambuja announced a dividend on equity shares at ₹2 per share.The company’s share listed on the BSE closed at ₹534.10.