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 efficiencies.

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

• PAT declined 36% in Q2 FY25 and 33% in H1 FY25 YoY, reflecting margin pressures from lower price realization and higher costs.

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

Financial highlights

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

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

• Q2 FY25 PAT: INR 473 crores (-36% YoY); H1 FY25 PAT: INR 578 crores (-33% YoY).

• Cash and cash equivalents at INR 10,135 crores as of 30th September 2024; net worth at all-time high of INR 59,916 crores.

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

Outlook and guidance

• Cement demand expected to grow 4-5% in FY25, driven by infrastructure and housing.

• Capacity expansion on track to reach 140 MTPA by FY28; operational capacity 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 expected to reach 20% by FY25 and 60% by FY28.