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 and 23 MTPA under execution.

• Achieved highest ever Q1 clinker and cement sales in five years, with consolidated volumes up 3% year-over-year 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 expansion 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 standalone revenue at ₹4,515.79 crore; consolidated net profit was ₹789.63 crore, both showing declines year-over-year.

• EBITDA for the quarter was INR 1,280 crore at a margin of 15.4%, with EBITDA per ton at INR 807.

• PAT dropped 25% year-over-year to Rs. 790 Cr; EPS (diluted) for the quarter was 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.

Outlook and guidance

• Cement demand expected to grow 7%-9% in FY25, supported by government infrastructure spending and housing initiatives.

• Capacity to reach 100 million tons by Q2 FY26 and 140 million tons by FY28; all expansion to be funded by internal accruals, maintaining a debt-free position.

• Cost optimization initiatives targeting a reduction to INR 3,650 per ton by FY28, with a 16% reduction since Sep'22.

• Green power share to rise to 31% by FY25 and 60% by FY28.

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