Ambuja Cement net down 16 per cent in Q4 on lower realisation

Sales volume was up 13 per cent at 18.7 million tonne in the quarter under review

Ambuja Cement, an Adani Group company, has reported that its net profit in March quarter was down 16 per cent at ₹1,282 crore against ₹1,521 crore logged in the same period last year on the back of lower realisations and higher tax outgo.

Revenue increased 12 per cent to ₹9,802 crore (₹8,785 crore).

Sales volume was up 13 per cent at 18.7 million tonne (16.6 mt) in the quarter under review.

While EBITDA was up ₹1,868 crore (₹1,699 crore), EBITDA per tonne was down 2 per cent to ₹1,001 (₹1,026).

Overall expenses were up at ₹8,822 crore (₹7,747 crore). Tax outgo also increased to ₹497 crore (₹74 crore) in the quarter.

The company’s raw material cost was up 7 per cent at ₹696 (₹647) per tonne, while power and fuel cost jumped 2 per cent to ₹1,230 (₹1,202) a tonne and freight cost was down at ₹1,238 (₹1,258).

Green target

The company has set a target to increase the green power mix from 26 per cent to 60 per cent by FY28.

Out of planned 1 GW renewable energy power with investment of ₹6,000 crore by FY28, 200-MW solar power and 99 MW of wind power at Khavda, Gujarat, was commissioned last fiscal. This will result in annualised cost saving and EBITDA improvement of ₹30 per tonne. The balance will be commissioned by next June.

Logistics costs was down 2 per cent at ₹1,238 a tonne with overall lead distance reduced by 16 km and direct dispatch up 4 percentage points to 58 per cent.

The company targets to achieve a cost of ₹3,650 (₹3,795) per tonne by FY28 to boost EBITDA margins.

Vinod Bahety, Whole Time Director & CEO, Ambuja Cements, said the company has ongoing organic expansions at various stages, which will take capacity to 118 mtpa by FY26-end.

As India builds the foundation for a $10-trillion economy, the company is committed to building the nation’s infrastructure that empowers growth, he said.

For FY25, the company’s net profit was up 8 per cent at ₹5,158 crore (₹4,765 crore), while revenue increased 3 per cent to ₹33,698 crore (₹32,808 crore).

Published on April 29, 2025