Ambuja Cement Q3 Results: Consolidated Net Profit Skyrockets 157% to Rs 2,115 Crore, Revenue Up 4%
Ambuja Cements has announced its financial results for the third quarter of fiscal year 2025 (Q3 FY25), reporting a remarkable 157% year-on-year increase in consolidated net profit. The company's outstanding performance is attributed to significant volume growth, efficiency investments, and enhanced market presence.
Financial Performance Overview
For the quarter ended December 2024, Ambuja Cements reported a consolidated net profit (attributable to shareholders) of Rs 2,115 crore, a substantial jump from Rs 824 crore in the same period last year. Revenue from operations for Q3 FY25 stood at Rs 8,415 crore, up 4.5% from Rs 8,052 crore in the corresponding quarter of the previous financial year.
The Adani Group company achieved a 17% year-on-year volume growth, reaching 16.5 million tonnes, marking its highest-ever cement sales volume in a single quarter. This impressive growth was driven by a significant boost in efficiencies, an enhanced market presence, cost leadership, and synergies within the group.
On a sequential basis, the company's performance was equally impressive, with a net profit jump of 364% compared to Rs 456 crore in Q2 FY25. Revenue also increased by 16% quarter-on-quarter, up from Rs 7,268.43 crore in the July-September quarter.
Financial Position and Debt Status
Ambuja Cements' net worth increased by Rs 2,619 crore during the quarter, reaching Rs 62,535 crore. The company remains debt-free and maintains a Crisil AAA (stable) / Crisil A1+ rating. Cash and cash equivalents stand at Rs 8,755 crore, representing 14% of the net worth. Business-level working capital for Ambuja (consolidated) stands at 31 days.
Business Updates and Capacity Expansion
Ambuja Cements commissioned 200 MW of solar power at Khavda, which is expected to reduce power costs in the upcoming quarters. The company also added 631 million MT of limestone reserves during the December 2024 quarter, bringing the total reserves to 8.3 billion MT.
The company's capacity is projected to reach 104 MTPA by Q4 FY25, 118 MTPA by FY26, and 140 MTPA by FY28. The Orient Cement acquisition is expected to be completed in Q4 FY25, while the mergers of Penna and Sanghi are currently in progress.
Outlook
Ambuja Cements anticipates improved consumption demand in the housing and infrastructure segments, coupled with increased government spending, to drive a rebound in cement demand growth. The company expects demand to grow by 4-5% in FY25, supported by the pro-infrastructure and housing Budget 2025. Ambuja Cements is well-positioned to benefit from these trends and aims to continue growing at a faster pace than the industry average.
Ambuja Cements' strong Q3 FY25 results underscore the company's robust operational performance, strategic investments, and positive outlook for the cement sector. The company's focus on efficiency, capacity expansion, and market growth positions it well for continued success.
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