Ambuja Cements Reports Robust Quarterly Results With Increased Capacity & Strategic Acquisitions

Ambuja Cements, a leading player in the cement and building materials sector, has unveiled impressive quarterly results for the April-June period.

The company reported an operating EBITDA of Rs 1,280 crore and a PAT of Rs 790 crore, reflecting a strong financial performance.

Operating costs improved by 3% year-on-year to Rs 4,437 PMT, showcasing the company’s efficiency in managing expenses.

Ajay Kapur, Whole Time Director and CEO of Ambuja Cements attributed the positive results to a robust focus on innovation, digital transformation, customer satisfaction, and strong environmental, social, and governance (ESG) practices.

Kapur highlighted, “Our continued focus on cost management and operational excellence positions us well for the future. We are on track to achieve our cost reduction goal of Rs 530 PMT by FY28 and anticipate our capacity expansion through the Penna Cement acquisition to significantly enhance our market presence. With this acquisition, we will reach a capacity of 89 MTPA and are likely to meet our target of 140 MTPA by FY28.”

In a strategic move last month, Ambuja Cements announced its acquisition of Hyderabad-based Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs 10,422 crore.

This acquisition aligns with the company’s growth strategy and will contribute to increased market share and profitability.

Ambuja Cements Q1 FY25: Operating EBITDA At Rs 807 PMT, 15.4% Margin

For the first quarter of FY25, Ambuja Cements however reported an operating EBITDA of Rs 807 PMT and an EBITDA margin of 15.4%.

Additionally, the company expanded its resources by adding 275 million MT of limestone reserves.

The integration of the recently acquired Tuticorin GU and the forthcoming Penna Cement is expected to bolster market share, profitability, and return on capital employed (RoCE).

The cement sector has seen a 7-8% increase in demand for FY24, reaching 422 MTPA, and expects to grow by 7-9% in FY25, driven by strong economic growth and rising demand in housing and infrastructure.

The government’s commitment to infrastructure and housing development, with an investment of $3 trillion through various schemes and a budget allocation of Rs 11.11 lakh crore for Capital Expenditure in FY25, is to further buoy cement demand.

Ambuja Cements remains optimistic about the future, with these strategic measures expected to drive continued growth and strengthen the company’s market position.

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