Adani group-promoted Ambuja Cements on Wednesday reported a 156 per cent year-on-year (Y-o-Y) rise in its consolidated net profit (attributable to the owners of the company) for the third quarter of the financial year 2025 (Q3FY25), with volume growth, one-time tax-related reversals and receipt of certain governemnt incentives.
The company’s net profit came in at Rs 2115 crore for the quarter under review, against Rs 824 cr reported during the third quarter of FY24. Its revenue from operations soared 14.8 per cent to Rs 9,329 crore during Q3FY25.
The company’s other income for the quarter stood at Rs 1352 crore, a nearly seven-fold rise. Further, the company reported Rs 913 crore as revenue related to Government grants, including duty credits/ refunds.
In a Bloomberg poll, analysts expected a net income adjusted of Rs 656.2 crore and revenue of Rs 8593 crore. Ambuja Cements beat both profit and revenue estimates.
With a growth in profit, Ambuja Cements’ performance was in contrast to declining profits of its industry rivals like UltraTech Cement and Dalmia Bharat.
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Volume growth for the Adani-promoted company also outdid that of UltraTech and Dalmia that reported a 10 per cent rise and two per cent decline respectively. With 16.5 million tonnes, Ambuja Cements volume was up 17 per cent from a year ago.
Ajay Kapur, Whole Time Director and Chief Executive Officer for Ambuja Cements said, “Our strategic acquisitions have significantly increased our capacity and market presence.”
The company’s Ebitda per tonne was at Rs 1,038, the company said, down from Rs 1,225 a year ago.
“The significant boost in efficiencies, enhanced market presence and cost leadership aligned with group synergies have been the growth drivers for the cement business. Efficiency investments and digitisation initiatives have started to yield results. The company remains committed to maintaining its cost and market leadership in coming quarters,” Ambuja Cements said in its statement.
The second-largest producer of cement, noted that improved consumption demand in housing and infrastructure segments, and increased government spending are poised to reverse the tepid 1.5-2 per cent cement demand growth during the first-half of FY25.
It expects demand to grow by 4-5 per cent in FY25, further supported by the pro-infra and housing Budget 2025.
“Ambuja Cements is well-positioned to benefit from these trends. The anticipated rebound in demand, supported by government initiatives, is likely to enhance cement sector performance in the coming quarters. Ambuja Cements will continue to grow at a faster speed than the industry,” the statement added.
Of the company’s recent acquisitions, Ambuja Cements noted, supply from Krishnapatnam grinding unit from Penna Cement to Cochin and Mangalore market through sea route has commenced and this will help in optimising freight costs and boost profitability.
Penna Cement plants, the company said, are being stabilised and with an 85 per cent of clinker capacity utilisation at present.
Ambuja Cements continues to remain debt-free, with a cash and cash equivalent of Rs 8,755 crore, reported as of December.