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Business Standard
a day ago
- Business
- Business Standard
Ambuja makes 30% of cement used in infra, housing projects in India: CEO
Ambuja Cements accounts for nearly 30 per cent of the cement used in housing and infrastructure projects in India, the company, part of the Adani Group, stated in its annual report. The company, the second-largest cement maker in India, has surpassed 100 million tonnes per annum (MTPA) of cement capacity in FY25 and is targeting 118 MTPA by financial year 2025–26 (FY26) and 140 MTPA by FY28. The expansion will be primarily driven by brownfield projects. According to Ambuja Cements Chief Executive Officer Vinod Bahety, 'Ambuja Cements, now a core part of the Adani Group's cement business, contributes to nearly 30 per cent of India's homes and infrastructure. This is a story of resilience fuelled by a growth mindset – a journey that marries legacy with innovation and is inspired by a clear and purposeful vision.' Bahety added, 'A key catalyst behind this success has been our series of efficient and timely acquisitions, each completed with precision and synergy. Alongside inorganic growth, our organic expansion projects continue to gain strong momentum across the country, bringing us closer to our ambitious long-term target of reaching 140 MTPA by 2028.' The company became the ninth-largest cement producer globally in FY24 after crossing 100 MTPA in consolidated capacity. The Adani Group entered the cement industry in September 2022 with the acquisition of Ambuja Cements from Switzerland-based Holcim for $6.4 billion. The company said, 'Having achieved nearly 50 per cent growth in just 30 months, our roadmap is clear: reaching 118 MTPA by FY26 and 140 MTPA by FY28, primarily through brownfield expansion projects.' Key projects planned for FY26 include clinker and grinding units at Bhatapara, Sankrail, Sindri, Salai-Banwa, Dahej, Marwar, Kalamboli, Krishnapatnam, Bathinda, Jodhpur, Maratha, and Warisaliganj. Ambuja Cements is also progressing on nine grinding unit projects beyond FY26. In FY25, the company reported 65.2 million tonnes in sales volume, ₹35,045 crore in revenue, and ₹5,158 crore in profit after tax. Bahety said, 'Our strong balance sheet, marked by a debt-free status, underscores our prudent capital allocation and financial discipline.' The company is focusing on logistics cost optimisation and green energy. 'By shifting a significant portion of our freight to seaborne transport, optimising depot locations, and leveraging GPWIS and BCFC rakes, we have achieved a 6 per cent reduction in logistics costs to date,' Bahety said. Ambuja Cements targets a further 15 per cent logistics cost reduction by FY30. It aims to power 60 per cent of future cement capacity and 83 per cent of clinker operations with green energy. The company projects significant industry growth, estimating installed cement capacity in India to reach 850 MTPA by 2030 and 1,350 MTPA by 2050.
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Business Standard
29-04-2025
- Business
- Business Standard
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.
Time of India
22-04-2025
- Business
- Time of India
ETMarkets AIF Talk: With Rs 10,000 cr in AUM, Carnelian sees tariff volatility as investment opportunity, sees Manoj Bahety
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Despite the global concerns surrounding tariff volatility , seasoned fund manager Manoj Bahety , Founder of Carnelian Asset Management and Advisors, remains optimistic about India's economic on how his Alternative Investment Fund (AIF) is navigating market volatility, Bahety highlights that India's structural growth story remains firmly believes the recent tariff tensions between the US and other economies, including India, may not be as disruptive as feared. 'India's exports to the US account for just about 2% of its GDP. Moreover, the tariff rates imposed on Indian goods are significantly lower than those on competitor nations. As such, we see the current tariff situation as net positive for India,' he India's macroeconomic fundamentals strong and liquidity conditions supportive, Bahety emphasized that Carnelian is continuing to focus on structural growth stories . 'We are overweight on BFSI, pharma, CDMO, and industrials — sectors where the impact of tariffs is minimal. While IT could face some headwinds if US growth slows, we don't see this as a long-term concern,' he than retreating in the face of volatility, Carnelian Asset Management — which oversees an AUM of Rs 10,000 crore — views the current scenario as an opportunity to deploy capital more efficiently.'We are treating this volatility as a chance to invest in long-term structural opportunities. Many of these companies are relatively unaffected by the tariffs, and post the recent corrections, their valuations have become more attractive,' Bahety whether any adjustments were made in April to safeguard capital, Bahety clarified that no major rejig was necessary. 'We conducted a detailed analysis of our portfolios to gauge the exposure to US manufacturing. The weightage of such companies is limited — between 8-12% — and we don't see any material shift in their growth trajectory. So, we've not made significant changes to our portfolio.'Looking ahead to FY26, Bahety offered a word of advice for investors: 'Stay calm and avoid getting swayed by short-term noise. Historically, uncertain times have proven to be the best periods for investing. When viewed objectively, the current tariff tussle between the US and China could turn into a major tailwind for Indian manufacturing exports if it persists.'Bahety concluded by reiterating his bullish stance on India's long-term prospects, encouraging investors to focus on fundamentals and look through the short-term volatility.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
