Ambuja Cements records 119% jump in FY 2024 PAT at Rs 4,738cr

Ambuja Cements, a subsidiary of the Adani Group, has announced its highest-ever annualised Profit After Tax (PAT) of ₹4,738 crores, a striking 119% increase year-over-year (YoY). The company’s Operating EBITDA for fiscal year 2024 also soared to ₹6,400 crores, up 73% from the previous year, indicating robust operational efficiency and profitability.

Strategic Acquisitions and Capacity Expansion Drive Growth

The company’s financial upswing is partly attributed to the successful completion of three acquisitions—Sanghi, Asian Cements, and GU in Tuticorin—increasing its cement capacity by 11.4 million tonnes per annum (MTPA), which now totals 78.9 MTPA. These strategic moves, coupled with a targeted commencement of 4 MTPA clinkering and 4.8 MTPA cement capacity by Q4 FY’25, are set to bolster Ambuja’s market position further.

Q4 Performance Highlights and Future Projections

In Q4 FY’24 alone, Ambuja Cements witnessed a 37% YoY increase in Operating EBITDA, amounting to ₹1,699 crores. The quarter also marked the highest clinker and cement sales over the last 20 quarters, with EBITDA per metric ton (PMT) rising by 17% YoY to ₹1,026. These figures reflect the company’s strong operational capabilities and strategic focus on cost optimization and efficiency improvements.

Ambuja Cements reports a record annualised PAT and EBITDA growth in FY 2024, driven by strategic acquisitions and operational excellence.

Sustainable Practices and Renewable Energy Investments

Ambuja Cements is committed to sustainability and has planned to operationalize 200 MW of its 1 GW renewable power goal by May 2024. This shift towards green power is expected to improve the company’s EBITDA by approximately ₹30 PMT annually, aligning with its long-term strategy of reducing environmental impact and enhancing cost efficiencies.

Industry Impact

Ambuja Cements’ performance in FY 2024 exemplifies the resilience and adaptability of its business model against a challenging global economic backdrop. The company’s strategic investments in capacity expansion, operational efficiency, and sustainability initiatives are commendable. They are not only expected to drive future growth but also significantly contribute to the industry’s evolution towards more sustainable and efficient practices.