Volume growth of 9% YoY, at 14.2 Mn T, Highest Volume in Q2 series in the last 5
years
Highest quarterly revenue of Rs 7,516 Cr, up 1% YoY
Operating EBITDA at Rs.1,111 Cr, Rs 780 PMT, EBITDA margin at 14.8% highest amongst
peers
Cash & Cash Equivalent at Rs. 10,135 Cr
Net worth increased to Rs. 59,916 Cr
EDITOR'S SYNOPSIS
- Announced the signing of a binding agreement with Orient Cements for acquisition of 46.8%
shares, at an equity value of Rs 8,100 Cr
- Becomes world's first cement company to join Alliance for Industry Decarbonization (AFID),
an initiative of IRENA (International Renewable Energy Agency)
- With the accelerated organic and inorganic growth, well poised to achieve 100+ MTPA capacity
by Mar'25
- Operating Cost at Rs. 4,497 PMT, improved by Rs 184 PMT (4%) YoY
- EPS of Rs 1.85 for the quarter
- Ambuja has been recognised amongst 'Iconic Brands of India 2024' by The Economics Times
Ahmedabad, 28 October 2024:Ambuja Cements, the most trusted legacy cement brand,
one of India's largest cement and building materials company and part of the diversified Adani
Group today announces steady financial performance for Q2 and first half-year(H1) of FY'25. This
performance is supported by healthy volume growth, increasing scale of operations, value
extraction of acquired assets, enhanced cost leadership, improved operational efficiencies and
group synergies.
Mr. Ajay Kapur, Whole Time Director & CEO, Ambuja Cements, said, 'We are glad to
deliver another sustained performance aligned to our growth blueprint and setting new benchmarks
in efficiency. We continue to focus on innovation, digitisation, customer satisfaction and ESG
as the core elements of our business. With our strong foothold across the nation, we are further
expanding our footprint in new geographies in-line with our vision. Post successful completion
of the orient cement transaction, we are well poised to achieve 100+ MTPA capacity by this
fiscal year end.'
Operational Highlights
| Particulars (YoY) |
Q2 FY'25 |
H1 FY'25 |
| Sales Volume
(Clinker & Cement) |
Growth of 9% YoY, at 14.2 MnT, highest volume in Q2 series in last 5 years |
Growth of 6% YoY, at 30.1 MnT, highest volume in H1 series in last 5 years |
| Kiln Fuel
Cost |
Reduced by 13%
(Rs. 1.82 to Rs. 1.59/'000 kCal) |
Reduced by 15%
(Rs. 1.96 to Rs. 1.67/'000 kCal) |
| WHRS as a % of total power Consumption |
Increased by
3.2 pp to 15.1% |
Increased by
3.4 pp to 15.1% |
s
| AFR consumption in Kiln |
Increased by
2.5 pp to 9.5% |
Increased by
2.4 pp to 9.4% |
- Capex & Opex based initiatives across all operational areas viz. volumes, efficiencies and
cost coupled with Group synergies have shown healthy improvements reinforcing Ambuja's cost
leadership.
- Increased use of low cost Imported Petcoke and E-auction coal along with overall reduction
in cost of fuel basket have contributed to 13% reduction in Kiln fuel cost (Consolidated)
from Rs. 1.82 to Rs. 1.59 per '000 Kcal.
- Thermal energy consumption improved by 3 kCal/Kg of Clinker at 758 kCal.
Financial Highlights (Consolidated)
- Highest revenue in Q2 series in the last 5 years at Rs. 7,516 Cr, driven by higher trade
sales volume (up by 1%) and premium product as % of trade sales at 26% (up by 3.3 pp YoY)
- Higher volume along with improved operational parameters resulted in growth in all business
parameters.
- EBITDA PMT @ Rs. 780, EBITDA Margin of 14.8%,
- Net worth increased by Rs.450 Cr during the quarter and stands at Rs. 59,916 Cr, company
remains debt free & continues to maintain Crisil AAA (stable) /
Crisil A1+ ratings.
- The Cash & Cash Equivalent stands at Rs. 10,135 Cr enables
accelerated growth in future.
- For Ambuja (consolidated), business level working capital stands at 33 days, reflecting
agility in unblocking the funds in inventory and receivables.
Financial Performance for the Quarter ended September 30, 2024:
| Particulars |
UoM |
Consolidated |
Standalone |
| Q2
FY'25 |
Q2
FY'24 |
Q2
FY'25 |
Q2
FY'24 |
| Sales Volume
(Cement and Clinker) |
Mn T |
14.2 |
13.1 |
8.7 |
7.6 |
| Revenue from Operations |
Rs. Cr |
7,516 |
7,424 |
4,213 |
3,970 |
| Operating EBITDA & Margin |
Rs. Cr |
1,111 |
1,302 |
681 |
773 |
| % |
14.8% |
17.5% |
16.2% |
19.5% |
| Rs. PMT |
780 |
995 |
784 |
1,020 |
| Other Income |
Rs. Cr |
374 |
476 |
265 |
378 |
| Profit Before Tax |
Rs. Cr |
713 |
1,340 |
673 |
880 |
| Profit After Tax |
Rs. Cr |
473* |
987 |
501 |
644 |
| EPS - Diluted |
Rs. |
1.85 |
3.74 |
2.03 |
3.03 |
Financial Performance for the Half-Year ended September 30, 2024:
| Particulars |
UoM |
Consolidated |
Standalone |
| H1
FY'25 |
H1
FY'24 |
H1
FY'25 |
H1
FY'24 |
| Sales Volume
(Cement and Clinker) |
Mn T |
30.1 |
28.5 |
18.0 |
16.7 |
| Revenue from Operations |
Rs. Cr |
15,828 |
16,137 |
8,729 |
8,700 |
| Operating EBITDA & Margin |
Rs. Cr |
2,391 |
2,969 |
1,327 |
1,722 |
| % |
15.1% |
18.4% |
15.2% |
19.8% |
| Rs. PMT |
795 |
1,042 |
736 |
1,031 |
| Other Income |
Rs. Cr |
729 |
739 |
685 |
568 |
| Profit Before Tax |
Rs. Cr |
1,807 |
2,851 |
1,437 |
1,746 |
| Profit After Tax |
Rs. Cr |
1,256* |
2,123 |
1,068 |
1,289 |
| EPS - Diluted |
Rs. |
4.47 |
8.04 |
4.36 |
6.10 |
* Includes exceptional item of Sanghi Rs. 121 Cr, AMRL Rs. 35 Cr
ESG Updates
- Ambuja becomes world's first cement company to join the Alliance for Industry
Decarbonization (AFID), an initiative of IRENA (International Renewable Energy Agency)
- Ambuja Cement has been honoured with prestigious Golden Peacock Award for excellence in ESG
- Ambuja Cements becomes a signatory to the transitioning industrial cluster initiative of
World Economic Forum
- Ambuja and ACC are committed to Net Zero by 2050. These are the only 2 cement companies in
India who are undergoing Net Zero target validation from SBTi
- Sustainability Reports for Ambuja and ACC are published and can be accessed at respective
websites
- We have taken noteworthy initiatives on renewable power, water conservation, circular
economy, TSR, tree plantation & high share of green cement in product mix
- Ambuja and ACC created societal values for over 4.72 million people by contributing to
fields like healthcare, education, employment, and sustainable livelihoods
Branding
- Ambuja Cements and ACC launch new Brand Films honouring 'Real-life Giants' and 'Glorious
Unity of India on 78th Independence Day.
- Ambuja Cements has created an innovative content series titled #Giants together to show case
inspiring stories of loyal contractors across India
Digitalisation
- A state-of-the-art in-plant automation covering automated weighbridge operations, vehicle
movement control and tracking, vehicle identification, intelligent order allocation, auto
truck sequencing, and packing plant automation has been implemented across some plants
- 'Adani Cement Connect' - the Digital Sales platform allows dealers to place orders and check
real-time outstanding payments, invoices, credit and debit notes
- 'Adani Rewards Connect' - the Digital Rewards platform - enables contractors, dealers, and
retailers to check their loyalty gains and redeem them using the rewards catalogue
- The Company has made significant advancements in its digitalization journey by modernizing
its network infrastructure and implementation of SD-WAN, resulting in faster order
processing and quicker business transactions.
Outlook
Strong infrastructure demand and ongoing needs from the housing and commercial sectors are
anticipated to boost cement demand in H2 FY 2025. The introduction of PMAY Urban Housing 2.0,
with an allocation of ₹11 lakh crore, along with Government's continued focus on infrastructure
development as the key to economic growth augurs well for cement sector. Strategic investments
in roads, railways along with urban and commercial amenities, is poised to drive robust growth.
We expect demand during FY 2025 to grow in the range of 4-5%
Achievements
- Ambuja Cements is amongst the 8 Adani Group companies to be featured in TIME's prestigious
Best Companies 2024 list.
- 5-Star Rating awarded for RKBA Limestone Mine by the Ministry of Mines and Indian Bureau of
Mines.
- 5 plants received Platinum, and 3 received Gold Awards at the 6th ICC National Occupational
Health and Safety Conference & Awards.
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