Ambuja Cements (500425) Q2 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of INR 7,516 crores for Q2 FY25, with 9% YoY volume growth and major acquisitions (Penna, Orient) integrated to support volume and cost efficiencies.

• Market share stands at 15%, targeting 20% by FY28, with significant capacity expansion underway through organic and inorganic means.

• Net worth reached an all-time high of INR 59,916 crores, with cash and cash equivalents at INR 10,135 crores; company remains debt-free.

• Board approved unaudited results for Q2 and H1 FY25; statutory auditors found no material misstatements.

• Segment reporting now includes Cement and Ready Mix Concrete.

Financial highlights

• Q2 FY25 consolidated revenue: INR 7,516 crores (+1% YoY); H1 FY25 revenue: INR 15,828 crores (–2% YoY).

• Q2 EBITDA: INR 1,111 crores (margin 14.8%, per ton INR 780, –15% YoY); H1 EBITDA: INR 2,391 crores (margin 15.1%, per ton INR 795, –19% YoY).

• Q2 FY25 net profit: INR 472.89 crores, down from INR 783.18 crores YoY; PAT dropped 36% YoY in Q2 FY25, 33% in H1 FY25 (excl. exceptional items).

• Operational cost per ton declined 4% YoY to INR 4,497; energy cost down 10%, transportation cost down 7%.

• Cash and cash equivalents at INR 10,135 crores as of 30th September 2024.

Outlook and guidance

• Cement demand expected to grow 4–5% in FY25, driven by robust infrastructure and housing sector support.

• Capacity expansion on track to reach 140 MTPA by FY28; operational capacity expected to cross 100+ MTPA by fiscal year-end.

• Ongoing cost reduction initiatives targeting INR 500 per ton savings by FY28, with 25–30% already achieved.

• Green power share targeted at 20% by FY25 and 60% by FY28; continued focus on cost optimization and digitalization.

• Results for Q2 and H1 FY25 are not fully comparable to prior periods due to recent acquisitions.