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  • 30 Apr 2025
  • ICICIdirect Research

AMBUJA CEMENT REVENUE WAS UP 11 PERCENT YOY TO RS 9889 CRORE

AMBUJACEM - 566 Change: 2.05 (0.36 %)

News: Revenue was up 11.2% YoY to Rs 9888.6 crore, led by 12.7% YoY growth in sales volume (18.7 mtpa) supported by additional volume of 1.6 mtpa from Sanghi Industries & Penna Cement. Blended realisation remained down 1.3% YoY. Sequentially, revenue was up 16.3% (after adjusting Rs 826.38 crore of excise duty refund in Q3FY25), led by 13.3% QoQ volume growth with 2.6% QoQ improvement in blended realisation. Total cost/ton declined by 1% YoY (-7.1% QoQ), mainly due to positive operating leverage. EBITDA/ton stood at Rs 999/ton (-2.4% YoY, +86.1% QoQ). Subsequently, EBITDA was up 4.4% YoY (+110.9% QoQ) to Rs 1867.6 crores. PAT declined by 25.8% YoY to Rs 956.27 crore. For FY25, adjusted revenue increased by 3.2% YoY, as volume growth of 10.1% YoY was partially offset by 6.3% YoY decline in realization. FY25 EBITDA/ton stands at Rs 789/ton (-27% YoY), as lower realizations negated the impact of lower costs

View: Operational performance improved substantially QoQ, driven by strong volume growth with improvement in realisation and cost structure. Management maintains guidance of better-than-industry volume growth and ~Rs 350/ton further reduction in total cost/ton by FY28. With ~19 mtpa of capacity expansion in process, Ambuja's total capacity will be increased to 118 mtpa by FY26E (from ~100 mtpa at present including Orient Cement). Longer term target is to reach 140 mtpa by FY28E, giving sustained growth visibility

Impact: Positive