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 and new contributions from Sanghi and Penna acquisitions.

• Q3 FY25 saw record cement sales volumes, with volume up 17% YoY to 16.5 MnT and 9M FY25 up 9% to 46.6 MnT.

• PAT for Q3 FY25 surged 140% YoY to ₹2,620 Cr, aided by one-time tax reversals and government grant income.

• EBITDA for Q3 FY25 was ₹1,712 Cr (18.4% margin), with cash and cash equivalents at ₹8,755 Cr as of December 31.

• Ongoing integration and ramp-up of acquired assets impacted operational costs and EBITDA per ton, with cost normalization expected as utilization improves.

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, INR 1,038 per ton); nine-month EBITDA: INR 4,103 crores (16.3% margin, INR 881 per ton).

• Q3 FY25 PAT: ₹2,620.09 crore, up from ₹1,090.74 crore YoY, boosted by tax reversals and government grants.

• Net worth increased to INR 63,000 crores, up INR 12,000 crores YoY; company remains debt-free with AAA ratings.

• Cash and cash equivalents: INR 8,755 crores at quarter end.

Outlook and guidance

• Cement demand expected to grow 4%-5% in FY25, with H2 stronger than H1 due to government spending and infrastructure push.

• Capacity to reach 104 MTPA by FY25-end, 118 MTPA by FY26, and 140 MTPA by FY28.

• Cost reduction target of INR 530 per ton to reach INR 3,650 per ton by FY28, with progressive savings each quarter.

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

• CapEx for FY25 projected at INR 9,000 crores, with INR 6,200 crores spent in the first nine months.