Ambuja Cements achieved a significant milestone by surpassing 100 MTPA in cement production capacity
Ambuja Cements, a leading entity in India’s cement industry and part of the Adani Group, announced its financial results for the fourth quarter of fiscal year 2024-25, ending March 31, 2025. The company reported a substantial 74.5% year-on-year increase in standalone net profit, reaching ₹928.88 crore, up from ₹532.29 crore in the same quarter of the previous year. This impressive growth was primarily driven by a 13% rise in sales volumes and a 19% increase in revenue from operations, which stood at ₹5,670.09 crore for the quarter.
Dividend Declaration
In line with its robust performance, Ambuja Cements’ Board of Directors recommended a dividend of ₹2 per equity share for the financial year 2024-25. The record date for determining shareholders’ eligibility is set for June 13, 2025, with the dividend payment scheduled on or after July 1, 2025, subject to shareholder approval at the upcoming Annual General Meeting.
Operational Highlights
The quarter witnessed Ambuja Cements achieving its highest-ever quarterly sales volume at 18.7 million tonnes, marking a 13% year-on-year growth. This surge was supported by capacity expansions, enhanced market penetration, and the operational ramp-up of acquired assets like Penna and Sanghi. The company also reported a 14% reduction in kiln fuel costs, attributed to a strategic fuel mix, and a 2% decrease in logistics costs, enhancing overall operational efficiency.
Consolidated Performance
On a consolidated basis, Ambuja Cements reported a net profit of ₹956.27 crore, reflecting a 9% decline from ₹1,050.58 crore in the corresponding quarter of the previous year. Despite the dip in consolidated profit, revenue from operations increased by 11.6% year-on-year to ₹9,802.47 crore. The company’s consolidated EBITDA rose to ₹1,868 crore, up 10% year-on-year, although the EBITDA margin slightly decreased to 18.9% from 19.1%.
Strategic Outlook
Ambuja Cements achieved a significant milestone by surpassing 100 million tonnes per annum (MTPA) in cement production capacity. The company has outlined plans to expand its capacity to 118 MTPA by the end of FY26 and aims to reach 140 MTPA by 2028. These expansions are part of the company’s strategy to strengthen its market position and meet the growing demand in the infrastructure and construction sectors.
Market Response
Following the announcement of the Q4 results, Ambuja Cements’ shares experienced a slight decline, trading approximately 1% lower amid a generally subdued market. Despite the short-term market reaction, the company’s strong operational performance and strategic growth plans position it favorably for sustained long-term growth.
Industry Context
The cement industry in India is witnessing a mixed performance among major players. While Ambuja Cements reported significant profit growth, other companies like UltraTech Cement and ACC faced challenges due to rising costs and soft cement prices. Dalmia Bharat managed to sustain performance through strict cost control despite lower prices and volumes. The overall industry outlook remains positive, driven by increased infrastructure spending and government initiatives.
Ambuja Cements’ Q4 FY25 results reflect a strong operational performance, marked by substantial profit growth, increased sales volumes, and strategic capacity expansions. The company’s proactive measures in cost management and its commitment to scaling operations underscore its readiness to capitalize on the growing opportunities in India’s infrastructure and construction sectors.
