&w=3840&q=100)
Ambuja Cement's Q4FY25 profit declines 9% despite sales volume growth
Adani family-owned Ambuja Cements' consolidated profit (attributable to the owners of the company) for Q4 FY25 declined by 8.98 per cent year-on-year (Y-o-Y) to Rs 956.3 crore, despite an annual sales volume (cement and clinker) growth of 13 per cent. The profit beat the Bloomberg analysts' poll estimate of Rs 735.4 crore.
The company's sales volume in Q4 FY25 grew to 18.7 million tonnes, the highest ever in a quarter across the company's history. The share of premium cement products in the company's trade sales stood at 29.1 per cent, up 5.3 per cent Y-o-Y.
However, the company's revenue from operations for the quarter was up by 11.6 per cent Y-o-Y to Rs 9,802.5 crore. The revenue missed the estimate of Rs 9,903.2 crore.
The company's total expenses for the quarter stood at Rs 8,821.7 crore, up 13.9 per cent Y-o-Y.
Vinod Bahety, whole-time director and chief executive officer of Ambuja Cements, said, 'This year marks a historic milestone in the journey of Ambuja Cements as we cross the 100 mtpa capacity. Additionally, we have ongoing organic expansions at various stages across the country, which will help us achieve 118 mtpa capacity by the end of FY26, a significant step, bringing us closer to our goal of 140 mtpa by 2028.'
Ambuja's operating Ebitda during Q4 FY25 stood at Rs 1,868 crore, up by 9.95 per cent Y-o-Y. Its Ebitda margin, however, declined marginally to 18.9 per cent in Q4 FY25 from 19.1 per cent in Q4 FY24. The Ebitda surpassed the Bloomberg estimate of Rs 1,644.6 crore.
The company's revenue for FY25 stood at Rs 33,697.7 crore, up by 2.71 per cent Y-o-Y. Its profit during the same period increased by 16.64 per cent to Rs 4,167.43 crore. The company's sales volume during the financial year grew by 10.14 per cent Y-o-Y to 65.2 million tonnes.
'Higher volume, along with improved operational parameters, resulted in growth in all business parameters,' the company stated.
Sequentially, the company's revenue increased by 16.5 per cent, but the profit dipped by 54.8 per cent. In Q3 FY25, the company's profit had grown to Rs 2,115 crore amid one-time tax-related reversals and receipt of certain government incentives.
In FY25, agility and change in the fuel basket helped to reduce kiln fuel cost by 14 per cent from Rs 1.84 to Rs 1.58 per Kcal, the company stated. Meanwhile, the logistics costs were reduced by 2 per cent to Rs 1,238 per tonne.
As of Q4 FY25, the company's cash and cash equivalents are at Rs 10,125 crore, with a net worth of Rs 63,811 crore, up by Rs 12,969 crore during the year. The company remains debt-free.
In FY25, the company achieved a cement capacity of 100 mtpa. It aims to achieve 118 mtpa of capacity by FY26 and 140 mtpa by FY28 via organic ways. 'We have also identified nine additional grinding unit projects for which land acquisitions and statutory approvals are under process, which shall enable us to reach 140 million tonnes by FY28,' Bahety said during the company's earnings call on Tuesday (April 29).
Bahety stated that he is seeing a healthy price trend across India so far in FY26, in comparison to Q4 FY25. 'There is a good momentum backed by a buoyancy in the demand in the government capex spending and overall consumption markets of the cement,' he added.
'Based on the demand growth trends observed in H2 FY25, it is projected that cement demand growth in India during FY26 will continue to benefit from the momentum gained by government spending on infrastructure and construction activities and pro-infra and housing Budget. Growth for FY26 is anticipated to range between 7 per cent to 8 per cent,' the company said.
Ambuja's peer UltraTech Cement reported a sales growth of 17 per cent and a profit growth of almost 10 per cent amid improved realisations. Meanwhile, Dalmia Bharat's sales declined by 3 per cent Y-o-Y, but the profit grew by 38.1 per cent amid cost reduction initiatives.
Bahety informed that the company is bidding for coal mines through the auctions conducted by the Government of India to meet the company's requirements as it aims to maximise captive coal consumption. 'A higher share of coal from the captive mines and the opportunistic buying of imported petcoke will help us to reduce our overall basket of fuel and therefore fuel cost,' he added.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
30 minutes ago
- Time of India
Axis Max Life appoints Sumit Madan as new CEO
MUMBAI: Sumit Madan has been appointed as the next managing director and chief executive officer of Axis Max Life Insurance, the company said in a statement on Wednesday. Currently serving as chief distribution officer, Madan will take over the top role for a five-year term starting October 1, 2025, subject to shareholder approval. Madan, with 25 years in banking and financial services, has held leadership roles at Citibank , AU Small Finance Bank , and IDFC First Bank . He joined Axis Max Life Insurance in February 2024 and has since contributed to improving the company's overall business rankings, according to an official statement. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The price of dental implants may surprise you Dental Implants | Search Ads Search Now Undo Under his leadership, Axis Max Life rose to the 4th position in FY23 and secured the No 1 rank in ecommerce and protection penetration among top private insurers, the company said. The company added 44 partners, including three key bancassurance alliances, and expanded its open architecture network. Axis Max Life reported a gross written premium of Rs 33,223 crore in FY23. Live Events
Time of India
40 minutes ago
- Time of India
No ring road till 40km highway done: Centre
Panaji: Nine years after the four- and six-laning of highways in Goa first started in 2016, 40km of expansion is yet to start. On CM Pramod Sawant 's request, Union road transport minister Nitin Gadkari had approved a Rs 15,000 crore ring road project for Goa. However, ministry officials have now told Goa it can't go ahead with this project until the remaining 40km of highway work is done. The purpose of the ring road project is to allow heavy vehicles moving from one state to another through Goa to continue their journey without adding to traffic congestion in the state. It was approved by Gadkari in Dec 2022, but it later came to the notice of ministry officials that the 40km of highway work is yet to be completed. 'There is no deadline as such for completing the highway expansion works in Goa. The work began around Oct 2016. The expansion was as per the study carried out to accommodate the projected traffic up to 2030. In 2025, Goa still has stretches along Cuncolim, Canacona, Bhoma, and Ponda which are either yet to be taken up, or construction is yet to begin,' said a source. By 2030, another assessment will be due vehicle density in Goa, which will allow planning for further expansion. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Good News: You May Be Richer Than You Think Undo 'Goa has received harsh comments in a letter from the ministry now, stating that it can take up the ring road project work only after its balance highway expansion is completed,' said the source. Officials said that highway expansion work in Goa was hit due to delay in land acquisition, public protests against the work because of various reasons and demands for elevated corridors, and other changes in the project scope. 'In the initial period itself, when highway expansion was taken up, the ministry pointed out in its audit that land acquisition delays was hitting the work very badly, and that work was taken up without acquiring at least 90% of the right of way area, as required by the ministry. It was then decided by then chief minister Manohar Parrikar to start work wherever land was available, till other parts were acquired. Contractors also take advantage of the lapses of PWD as they get advantage of project cost escalation if work is delayed,' said the source.
Time of India
40 minutes ago
- Time of India
Govt tries to auction flats to recover dues, gets no takers
Noida: Four flats of Newtech Promoters and Developers up on auction to recover dues failed to attract any buyers. The auction was conducted last week by Sadar tehsil as part of recovery proceedings after the builder defaulted on payments worth Rs 5.7 crore. The flats were part of the La Galaxia project in Greater Noida. Despite prior announcements and notices, officials said no one turned up to bid for the flats on June 4, leading to the cancellation of the auction. "The builder was served repeated notices but failed to deposit the dues. As part of the recovery process, four unsold flats were confiscated and put up for auction. The administration advertised about the auction but there was no response," said Charul Yadav, sub-divisional magistrate, Sadar tehsil. As per UP-Rera officials, a recovery certificate (RC) was issued to the developer in 2020. Since then, the builder failed to pay dues, following which the decision was taken to seize the four flats and auction the property. Officials said that the auction process will be initiated again soon, and efforts will continue to ensure recovery. "We will have to scheduleanother auction of the property again," Yadav told TOI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Tìm hiểu thêm Undo In May, the district administration had sealed the offices of 12 developers in Dadri for failing to clear more than Rs 175 crore in dues to the real estate regulator. Recovery certificates are issued by UP RERA if a developer fails to comply with an order passed by the regulatory authority — usually to refund buyers, pay penalties, or fulfil obligations like handing over possession. Once an RC is issued, it enables the district administration to recover the amount as arrears of land revenue, much like a tax recovery process.
