Ambuja Cements (500425) Q3 24/25 earnings summary

Executive summary

• Achieved consolidated revenue of INR 9,329 crores in Q3 FY25, with 16.7% YoY volume growth, including new contributions from Sanghi and Penna acquisitions; Q3 FY25 volume reached 16.5 MnT, up 17% YoY.

• EBITDA for Q3 FY25 stood at INR 1,712 crores with a margin of 18.4% and EBITDA per ton of INR 1,038; PAT surged 140% YoY to INR 2,620 crores, aided by one-time tax reversals.

• Commissioned 200 MW solar power in Gujarat, expanded ready-mix plant network to 100, and secured 631 million tons of new limestone reserves.

• Ongoing integration and ramp-up of acquired assets, with significant investments in operational efficiency, ESG initiatives, and government grant income recognized.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY25 were approved and reviewed by the Board and auditors.

Financial highlights

• Q3 FY25 revenue: INR 9,329 crores; nine-month revenue: INR 25,156 crores.

• Q3 FY25 EBITDA: INR 1,712 crores (18.4% margin); nine-month EBITDA: INR 4,103 crores (16.3% margin); Q3 FY25 PAT: INR 2,620 crores.

• Cash and cash equivalents as of Dec 31: INR 8,755 crores; net worth reached INR 63,000 crores.

• Significant government grant income and tax reversals contributed to higher net income.

• Company remains debt free with AAA credit rating.

Outlook and guidance

• Targeting cement capacity of 140 million tons by FY28, with 118 million tons expected by FY26.

• Cost reduction target of INR 530 per ton, aiming for INR 3,650 per ton by FY28; further 15% cost reduction targeted.

• CapEx for FY25 expected to be INR 9,000 crores, with INR 6,200 crores spent in the first nine months.

• Green power share expected to reach 60% by FY28; net zero commitment by 2050 validated by SBTi.

• Industry demand expected to grow 4%-5% in FY25, with H2 stronger than H1.