Ambuja Cements (500425) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly and nine-month cement sales volumes, with Q3 FY25 volume up 17% YoY to 16.5 MnT and revenue of INR 9,329 crores, driven by new contributions from Sanghi and Penna acquisitions.

• EBITDA for Q3 FY25 stood at INR 1,712 crores with an 18.4% margin; PAT surged 140% YoY to INR 2,620 crores, aided by tax reversals and government grant income.

• Net worth reached an all-time high of INR 63,000 crores; company remains debt-free with INR 8,755 crores in cash and equivalents.

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

• Results reflect significant acquisitions, government grant income, and tax reversals impacting profitability.

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: INR 2,620 crores, up 140% YoY, supported by tax reversals and government grants.

• Operational cost for Q3 FY25: INR 4,618 per ton; power and fuel costs decreased 7% YoY to INR 1,262 per ton; logistics costs down 6% YoY to INR 1,239 per ton.

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

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 end of FY25, 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.

• CapEx for FY25 projected at INR 9,000 crores, with INR 6,200 crores spent in the first nine months; expansion to be funded through internal accruals.

• Results for the current period are not fully comparable to prior periods due to major acquisitions and business combinations.