Ambuja Cements Achieves Highest Sales Volume in Five Years

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

• 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:

Financial Performance for the Half-Year ended September 30, 2024: