Ambuja Cements’ Q3 FY25 profit more than doubles as sales hit record highs
Ambuja Cements Limited, a subsidiary of the Adani Group and a leading player in India’s cement industry, has reported a significant surge in profitability for Q3 FY25, with its profit after tax (PAT) more than doubling year-on-year (YoY). The company’s cement sales volume reached a record 16.5 million tonnes, reflecting a 17% YoY increase.
The sharp rise in quarterly financial results comes as Ambuja Cements strengthens its market leadership through operational efficiency, strategic capacity expansions, and cost-optimisation initiatives. The company remains debt-free, with its net worth standing at ₹62,535 crore, while cash and cash equivalents amount to ₹8,755 crore, representing 14% of its total net worth.
CEO Ajay Kapur highlighted the company’s robust performance, stating:
“Our focus on efficiency, digitisation, and sustainable expansion has reinforced our market presence. We are accelerating growth with capacity expansions that will take us beyond 104 MTPA by Q4 FY25 and 118 MTPA by FY26, ensuring Ambuja Cements remains ahead of industry demand.”
How has Ambuja Cements optimised costs and boosted operational efficiency?
Ambuja Cements has implemented key operational enhancements to maintain its cost leadership, particularly in reducing fuel expenses, optimising logistics, and increasing the use of renewable energy. The company reduced its kiln fuel cost by 10% YoY, largely due to a higher reliance on imported petcoke and cost-efficient domestic coal procurement.
At the same time, the company continues to advance its green energy adoption, with the share of renewable power increasing to 21.5%, driven by higher waste heat recovery system (WHRS) usage and increased solar power generation. This aligns with its long-term goal of achieving 60% green power by FY28.
Ambuja Cements is also optimising logistics costs, achieving a 5% reduction through more efficient freight management. The commencement of sea-route cement shipments from Krishnapatnam Grinding Unit to Cochin and Mangalore has helped streamline distribution and reduce transportation expenses.
What role do acquisitions and capacity expansions play in Ambuja Cements’ growth?
Ambuja Cements has been aggressively expanding its footprint through acquisitions and capacity enhancements. The Orient Cement acquisition is set to close in Q4 FY25, while the merger of Penna Cement and Sanghi Cement is progressing, further consolidating Ambuja’s market position.
The company has also expanded its limestone reserves by 631 million tonnes, bringing its total reserves to 8.3 billion tonnes, ensuring long-term raw material security for cement production.
Newly acquired assets, including Sanghi, Asian, and Penna plants, are performing well, with clinker capacity utilisation at Penna plants reaching 85%. This integration strengthens Ambuja Cements’ ability to scale up production while maintaining cost efficiencies.
How is Ambuja Cements strengthening sustainability and ESG initiatives?
Ambuja Cements remains committed to sustainability, aligning with its Net Zero emissions goal by 2050. The company recently partnered with Finland-based Coolbrook to integrate zero-carbon rotodynamic heating technology, which will significantly reduce fossil fuel dependency in cement production.
The commissioning of a 200 MW solar power plant at Khavda is part of a broader 1,000 MW renewable energy expansion, which is expected to further reduce energy costs and carbon emissions by FY26.
Additionally, Ambuja Cements has enhanced water conservation measures, promoted circular economy practices, and prioritised high-blend cement production, which lowers carbon emissions. The company, along with ACC, is among the only two cement manufacturers in India undergoing Net Zero target validation from the Science-Based Targets initiative (SBTi).
What is the outlook for Ambuja Cements and the Indian cement industry?
Industry experts forecast a rebound in cement demand, driven by increased government infrastructure spending and rising housing construction activity. Although the sector saw only 1.5–2% demand growth in H1 FY25, projections suggest a 4–5% increase in the second half, supporting a stronger cement sales volume.
Ambuja Cements, with its strong balance sheet, strategic acquisitions, and cost-reduction measures, is positioned to outpace industry growth. With upcoming capacity expansions, increased green energy adoption, and logistics efficiencies, the company is set to reinforce its leadership in the Indian cement sector.
Will Ambuja Cements sustain its growth momentum?
With a record-breaking quarter, a clear roadmap for expansion, and a firm commitment to sustainability, Ambuja Cements has positioned itself as one of India’s most resilient cement manufacturers. Its debt-free status, combined with strong cash reserves and quarterly financial results, ensures that the company remains well-equipped to capitalise on rising market demand.
As Ambuja Cements continues to integrate acquisitions, scale up operations, and enhance cost efficiencies, its long-term growth prospects remain highly optimistic.
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