Ambuja Cements (500425) Q1 24/25 earnings summary

Executive summary

• Cement capacity increased 32% since acquisition to 89 million tons, targeting 140 million tons by FY28 through organic and inorganic growth, including Penna acquisition.

• Achieved highest ever Q1 clinker and cement sales in five years, with consolidated volumes up 3% YoY to 15.8 MnT.

• Net worth reached Rs. 59,465 Cr, with cash and cash equivalents at Rs. 18,299 Cr as of June 30, 2024.

• Maintained a debt-free status, with all expansions and growth capex funded by internal accruals and operating cash flows.

• Board approved unaudited standalone and consolidated results for the quarter ended June 30, 2024.

Financial highlights

• Q1 FY25 consolidated revenue was INR 8,311 crore, with EBITDA at INR 1,280 crore and margin at 15.4%.

• PAT for Q1 FY25 was INR 790 crore, with EPS (diluted) at 2.65.

• Cost per ton declined 3% to INR 4,437, with energy cost down 13% and transportation cost down 8%.

• Cash and cash equivalents as of June 30 stood at INR 18,299 crore.

• Standalone revenue for Q1 FY25 was ₹4,515.79 crore, with net profit at ₹570.65 crore.

Outlook and guidance

• Cement capacity to reach 100 million tons by Q2 FY26 and 140 million tons by FY28, with all expansions funded by internal accruals.

• Remain debt-free during expansion; Penna acquisition to be fully integrated by Q3 FY25.

• Targeting cost optimization of 8%-10% through CapEx and operational initiatives, aiming for Rs. 3,650 PMT by 2028.

• Green power (1,000 MW) to be commissioned by FY26, aiming for 60% power from renewables and 90% reduction in power cost by FY28.

• Focus on premium products and value-added solutions to drive volume and margin growth.