Ambuja Reports Highest Ever Cement Sales Volume in a Quarter

Ahmedabad, January 29, 2025: Cement and building materials company of the diversified Adani Portfolio Ambuja Cements Limited on Wednesday reported a net worth of INR 62,535 crore and nil debt with highest ever cement sales volume in a quarter as it announced sustainable financial results for Q3 ended December 31, 2024, and nine months (9M) of FY25.

The company announced cash & cash equivalent at INR 8,755 Cr (14 per cent of the net worth), and a volume growth of 17 per cent YoY, at 16.5 Mn T.

The other highlights of the financial results are:

• EBITDA PMT at INR 1,038, EBITDA margin at 18.4%.
• Commissioned 200 MW Solar Power at Khavda, will lead to reduction in power cost in upcoming quarters.
• Addition of 631 Mn MT Limestone reserves during December 24 quarter, taking total reserves to 8.3 Bn MT.
• Partnered with Finland-based Coolbrook to leverage zero-carbon rotodynamic heating technology.
• Capacity to hit 104 MTPA by Q4 FY25, 118 MTPA by FY26 and 140 MTPA by FY28.
• EPS of INR 8.59 for the quarter, up by INR 4.72 YoY.
• Orient Cement acquisition expected to be closed in Q4 FY’25. Merger of Penna and Sanghi under progress.

Whole Time Director & CEO of Ambuja Cements Ajay Kapur said: “We are pleased to report a quarter of sustainable performance, aligned with our growth plan. With focus on innovation, digitisation, customer satisfaction, and ESG, our vision drives our expansion into new geographies. Our strategic acquisitions have significantly increased our capacity and market presence. This will be dove-tailed with our ongoing expansion projects, delivering exceptional value for our stakeholders and propelling us towards achieving over 104 MTPA capacity by Q4 FY’25 and 118 MTPA by FY 26.”

Operational Highlights

• Efficiency initiatives and investments across all operational areas have shown healthy improvements reinforcing Ambuja’s cost leadership.
• Increased use of low cost Imported Petcoke and efforts to reduce cost of domestic coal (e-auction coal, efficient logistics, group synergies) has helped to reduce kiln fuel cost by 10% from INR 1.84 to INR 1.66 per ’000 Kcal.
• WHRS power share increased by 4.0 pp from 12.6% to 16.6%, Solar power mix increased by 1.9 pp from 2.5% to 4.4%, taking the green power share up by 5.7 pp to 21.5%, clear road map & investment commitments to achieve 60% green power by FY 28.
• Logistics costs reduced by 5% @INR 1,228/ton, driven by efficiency improvement journey (overall lead reducing by 4 km, direct dispatch up by 7 pp @57%). Through various freight negotiation initiatives, road PTPK has decreased by 2% YOY. This is going to be further reduced with roll out of initiatives viz. wheeler rationalisations, BCFC rakes etc.
• Ambuja has deployed 5 BCFCM rakes against the order for 26 BCFCM rakes placed earlier for transportation of dry fly ash. Planned to place further orders of 32 BCFCM rakes to cater the rising fly ash demand of existing and upcoming plants.
• Supply from Krishnapatnam Grinding Unit to Cochin and Mangalore market through sea route has commenced and this will help in optimizing freight costs and boost profitability.
• Acquired assets like Sanghi, Asian and Penna doing well. Penna plants operations getting stabilised and the Clinker capacity utilisation has gone up to ~85%.
• Cost reduction initiatives for fuel, fly ash, logistics and overall man-power productivity, will help to achieve cost of INR 3,650 PMT by FY 2028, will help to boost EBITDA margins.