Ambuja Cements (500425) Q4 23/24 earnings summary

Executive summary

• FY24 consolidated revenue was ₹33,160 crore, PBT ₹5,901 crore and PAT ₹4,738 crore; the FY23 comparison covers 15 months and is not directly comparable.

• Cement capacity reached 78.9 MTPA across the combined portfolio; standalone capacity was 31.45 MTPA at March 31, 2024.

• Growth was supported by cost controls, acquisitions and operating efficiencies, alongside a stated plan to expand capacity and green power.

Financial highlights

• Consolidated revenue from operations was ₹33,159.64 crore and total income ₹34,326.04 crore in FY24; FY23 revenue was ₹38,937.03 crore for 15 months.

• Consolidated PBT rose to ₹5,900.62 crore from ₹3,729.49 crore and PAT to ₹4,738.01 crore from ₹3,024.38 crore; prior period was 15 months.

• Consolidated CLC sales volume was 59.2 million tonnes; audited directors’ report lists cement production of 56.61 million tonnes and sales of 58.04 million tonnes.

• Standalone operating EBITDA was ₹6,400 crore, with a 19.3% margin; standalone revenue was ₹17,919 crore and PAT ₹2,335 crore.

• Consolidated exceptional income of ₹211.57 crore included a ₹225.29 crore gain on remeasurement of the previously held ACCPL stake, partly offset by other exceptional costs.

Outlook and guidance

• Capacity target: 100 MTPA by FY26 and 140 MTPA by FY28; 20 MTPA of expansions were under execution, with a further 41 MTPA at various stages.

• Cement-sector demand was projected to grow 8–9% in FY25; demand growth was forecast at 8–9% CAGR through FY28 versus 6–7% supply growth.

• Planned green-energy investment exceeds ₹10,000 crore; the target is 1 GW of solar and wind by FY26 and 376 MW of WHRS, supporting 60% renewable power for planned capacity by FY28.

• Standalone operating EBITDA margin target is 35% by FY28; a further ₹530 per tonne cost reduction target was set for the same period.