Ambuja Cement Profit Surge 242% To ₹1,758 Crore In Q3FY25, Announces Open Offer For 26% Stake In Orient Cement

Adani Group-owned Ambuja Cement posted a 242% rise in standalone net profit for Q3FY25. The company reported a net profit of ₹1,758 crore for the quarter ending December 31, 2024, compared to ₹514 crore in the same period last year.

The company’s standalone revenue from operations rose 10% to ₹4,850 crore in Q3FY25 from ₹4,422 crore in Q3FY24. Strong sales volumes and operational efficiencies drove this growth. However, Ambuja Cement shares fell 1.5% to ₹535 per share on the BSE at 1:20 pm on January 29.Ambuja Cement’s board approved an open offer to acquire up to 26% of Orient Cement from public shareholders at ₹395.4 per share. The company also plans to buy 37.9% of Orient Cement from its promoters and 8.9% from certain public shareholders.

“During the quarter, the Board approved acquiring 7,76,49,413 equity shares of Orient Cement, representing 37.9% of its share capital, from its promoters. The company will also acquire 1,82,23,750 equity shares, or 8.9% of the share capital, from some public shareholders. Additionally, the company will make an open offer to acquire up to 5,34,19,567 equity shares at ₹395.40 per share, representing 26% of Orient Cement’s total share capital,” Ambuja Cement stated in a stock exchange filing.

Capacity Expansion And Market Growth Plans

Ambuja Cement is expanding its production capacity. With Sindri, Farakka, and Sankrail grinding units nearing completion and the Orient Cement deal finalized, the company expects to reach 104 MTPA capacity by Q4FY25, 118 MTPA by FY26, and 140 MTPA by FY28. The company’s net worth hit ₹62,535 crore, with cash and cash equivalents at ₹8,755 crore, accounting for 14% of its net worth.

Ambuja Cement also added 631 million metric tons of new limestone reserves in Q3FY25. Its total reserves now stand at 8,300 million metric tons. The high-quality limestone reserves from Orient Cement will further strengthen its resource base.

Ambuja Cement’s sales volume grew 24% in Q3FY25 due to higher trade sales and an increased share of premium products. This helped offset lower realizations and contributed to a 14% revenue increase.

The company launched multiple initiatives to boost sales and improve realizations. These include technical service programs, an expanded ground network, continuous engagement with influencers, and increased branding and promotional activities.

“Various on-ground initiatives have been rolled out to increase sales volumes and improve realizations. These include technical service programs, wider ground networks, stronger influencer engagement, a higher share of premium products, and focused branding efforts,” the company said.

Ambuja Cement’s strong financial performance, strategic acquisitions, and expansion plans position it for long-term growth in the Indian cement industry.

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