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.’
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:
ESG Updates
• Ambuja becomes world’s first cement company to join the Alliance for Industry
Decarbonization (AFID), an initiative of IRENA (International Renewable Energy
Agency)
• Ambuja Cement has been honoured with prestigious Golden Peacock Award for
excellence in ESG
• Ambuja Cements becomes a signatory to the transitioning industrial cluster
initiative of World Economic Forum
• Ambuja and ACC are committed to Net Zero by 2050. These are the only 2 cement
companies in India who are undergoing Net Zero target validation from SBTi
• Sustainability Reports for Ambuja and ACC are published and can be accessed at
respective websites
• We have taken noteworthy initiatives on renewable power, water conservation,
circular economy, TSR, tree plantation & high share of green cement in product mix
• Ambuja and ACC created societal values for over 4.72 million people by contributing
to fields like healthcare, education, employment, and sustainable livelihoods
Branding
• Ambuja Cements and ACC launch new Brand Films honouring ‘Real-life Giants’ and
‘Glorious Unity of India on 78th Independence Day.
• Ambuja Cements has created an innovative content series titled #Giants together
to show case inspiring stories of loyal contractors across India
Digitalisation
• A state-of-the-art in-plant automation covering automated weighbridge operations,
vehicle movement control and tracking, vehicle identification, intelligent order
allocation, auto truck sequencing, and packing plant automation has been
implemented across some plants
• ‘Adani Cement Connect’ – the Digital Sales platform allows dealers to place orders
and check real-time outstanding payments, invoices, credit and debit notes
• ‘Adani Rewards Connect’ – the Digital Rewards platform – enables contractors,
dealers, and retailers to check their loyalty gains and redeem them using the
rewards catalogue
• The Company has made significant advancements in its digitalization journey by
modernizing its network infrastructure and implementation of SD-WAN, resulting in
faster order processing and quicker business transactions.
Outlook
Strong infrastructure demand and ongoing needs from the housing and commercial
sectors are anticipated to boost cement demand in H2 FY 2025. The introduction of
PMAY Urban Housing 2.0, with an allocation of ₹11 lakh crore, along with Government’s
continued focus on infrastructure development as the key to economic growth augurs
well for cement sector. Strategic investments in roads, railways along with urban and
commercial amenities, is poised to drive robust growth. We expect demand during FY
2025 to grow in the range of 4-5%.
Achievements
• Ambuja Cements is amongst the 8 Adani Group companies to be featured in TIME’s
prestigious Best Companies 2024 list.
• 5-Star Rating awarded for RKBA Limestone Mine by the Ministry of Mines and Indian
Bureau of Mines.
• 5 plants received Platinum, and 3 received Gold Awards at the 6th ICC National
Occupational Health and Safety Conference & Awards.
About Ambuja Cements Limited
Ambuja Cements Limited, is one of India’s leading cement companies and a member of the
diversified Adani Group – the largest and fastest growing portfolio of diversified sustainable
businesses. Ambuja Cements, with its subsidiaries has taken the Adani Group’s cement capacity
to 89 MTPA with 22 integrated cement manufacturing plants and 21 cement grinding units
across the country. Ambuja Cements has been recognised among ‘India’s Most Trusted Cement
Brand’ by TRA Research in its Brand Trust Report, 2024 and among ‘Iconic Brands of India’ by
The Economic Times. Ambuja has provided hassle-free, home-building solutions with its unique
sustainable development projects and environment-friendly practices since it started
operations. The company has many firsts to its credit – a captive port with ten terminals that
has facilitated timely, cost-effective and cleaner shipments of bulk cement to its customers. To
further add value to customers, the Company’s innovative products are now enlisted in GRIHA
product catalogue. These products not only fulfil important customer needs but also help in
significantly reducing their carbon footprints. Being a frontrunner in sustainable business
practices, Ambuja Cements ranks among ‘India’s Top 50 companies contributing to inclusive
growth’ by SKOCH and has been recognised for its climate change mitigation commitments with
a ‘Leadership Score’ of A- by CDP.
