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.

• 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 ₹59,465 crore, with cash and cash equivalents at ₹18,299 crore; company remains debt-free.

• Market share stands at 14% with a target of 20% by FY28; ongoing expansion and efficiency initiatives are key priorities.

• Integration of Penna Cement and ramp-up of Sanghi expected to drive further growth and cost synergies.

Financial highlights

• Q1 FY25 consolidated revenue was ₹8,311 crore, with standalone revenue at ₹4,515.79 crore.

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

• PAT for Q1 FY25 was ₹789.63 crore, with EPS (diluted) at 2.65.

• Cost per ton declined 3% to ₹4,437, with energy cost down 13% and transportation cost down 8%.

• Cash and cash equivalents as of June 30 stood at ₹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 of ₹550 per ton, aiming for ₹3,650 per ton by FY28.

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

• Management confident of achieving ESG targets ahead of schedule.