Ambuja Cements Q4 profit dips 16% to ₹1,282 cr, revenue up 11% on strong demand

Adani Group-led Ambuja Cements has achieved a consolidated revenue of ₹9,889 crore, up 11.2% from ₹8,894 crore in Q4 FY 2023-24, as the cement consumption recorded a growth of 6.5-7%. This increase in demand was driven by a pick-up in construction activities, an improvement in rural demand, traction in the real estate sector, and an increase in government spending.

However, the quarterly PAT saw a decline of 15.7% to ₹1,282 crore, compared to ₹1,521 crore in the same period last year.

The company's standalone performance remained resilient, with PAT growing by 74.6% to ₹929 crore. The operating EBITDA margin for Q4 stood at 18.9%, slightly lower than the previous year's 19.1%, while sales volume rose by 12.7% on a consolidated basis, underscoring the company's steady market presence.

The earnings per share EPS (diluted) dipped to ₹3.88 in the said quarter from 4.93 apiece in the year-ago period.

Ambuja Cements' consolidated revenue for FY 2024-25 surged 5.7% to ₹35,045 crore compared to ₹33,160 crore in the previous fiscal year. The company's PAT also rose by 8.9% to ₹5,158 crore, compared to ₹4,735 crore in FY 2023-24. The operating EBITDA margin, however, dipped from 19.3% to 17.0%, but the standalone PAT surged 60.8% to ₹3,755 crore. On the sales volume front, Ambuja saw cement and clinker sales surge 10.1% on a consolidated basis.

Vinod Bahety, Whole Time Director & CEO, 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 FY 2026, a significant step, bringing us closer to our goal of 140 MTPA by 2028. The 100 MTPA milestone is not just a number, it’s a mark of our ambition, resilience, and purpose. As India builds the foundation for a USD 10 trillion economy, we are committed towards our role in building the nation’s infrastructure that empowers growth, connects communities, and supports a greener tomorrow."

The company says its net worth increased by ₹12,969 crore during the year and stands at ₹63,811 crore, and it remains debt-free, while maintaining the highest rating Crisil AAA (stable)/Crisil A1+ . Ambuja Cements' cash & cash equivalent stands at ₹10,125 crore, while its business-level working capital stands at 28 days. For the full fiscal year, the EPS (diluted) increased to ₹16.96 from ₹16.65 in the previous year.

The Ambuja board recommended a dividend on equity shares at ₹2.0 per share, which is consistent with last year.

In its outlook, Ambuja Cements says the cumulative growth for FY’25 is likely to stay between 4-5%. "Based on the demand growth trends observed in H2 FY’25, it is projected that cement demand growth in India during FY’26 will continue to benefit from the momentum gained by government spending on infrastructure and construction activities and pro-infra and housing Budget. Growth for FY’26 is anticipated to range between 7% to 8."