Ambuja Cements Q4 Profit Dips but Shows Promise for Future Growth
Ambuja Cements, which is owned by Adani, reveals a 15.71% decrease in Q4 profits compared to the previous year; announces a Rs 2 dividend distribution.
Here's a lowdown on Ambuja Cements Ltd's latest fiscal Q4 earnings, as the company owned by Adani Group announces a profit decrease but aligns with future demand trends.
Taking a dive into the numbers, Ambuja Cements posted a profit of Rs 1282.24 crore in Q4, a 15.71% decrease compared to the same period last year (Rs 1,521.21 crore). They reported revenue from operations at Rs 9,802.47 crore, marking an 11.58% growth against the previous year's Q4.
Glancing at the standalone performance, Ambuja Cements reported a profit growth of 74.51% to Rs 928.88 crore, compared to the same period the previous year (Rs 532.29 crore).
Interestingly, consolidated volumes for the quarter saw a 13% increase to reach 18.7 million tonnes, a new high for the company in a single quarter. The kiln fuel cost was reduced by 14%, and the company notably increased green power's share in the total power consumption by 10.5 percentage points. These improvements led to growth in all business parameters, according to Ambuja Cements.
Vinod Bahety, Whole Time Director & CEO, Ambuja Cements, shared his enthusiasm: "We've just hit a significant milestone by reaching the 100 million tonnes per annum (MTPA) capacity. Ongoing organic expansions across the country will help us reach 118 MTPA by the end of FY 2026, bringing us steps closer to our goal of 140 MTPA by 2028."
The company's net worth increased by Rs 12,969 crore during the year and stood at Rs 63,811 crore, with cash & cash equivalent coming in at Rs 10,125 crore. This agile approach to inventory and receivables resulted in a business-level working capital of 28 days.
Dividend Announcement
The company board suggested a dividend of Rs 2.00 per Equity Share for the Financial Year 2024-25, with a record date set for June 13, 2025. The dividend payment is scheduled to begin on or after July 1, 2025, subject to applicable tax deductions.
Outlook
The outlook for cement consumption in India during FY26 seems bright, with growth projections ranging between 7 and 8%. This positive demand trend is attributed to an increase in construction activities, improvements in rural demand, traction in the real estate sector, and increase in government spending on infrastructure[3][5].
As India gears up for a $10 trillion economy, Ambuja Cements is committed to its role in building the nation's infrastructure, empowering growth, and supporting a greener tomorrow.
- Despite a 15.71% decrease in profit in Q4 compared to the previous year, Ambuja Cements has shown promise for future growth.
- The company's consolidated volumes for the quarter increased by 13%, reaching 18.7 million tonnes.
- Vinod Bahety, Whole Time Director & CEO of Ambuja Cements, is optimistic about the company's future, with ambitious expansion plans to reach 118 MTPA by the end of FY 2026.
- In the financial year 2024-25, the company board has suggested a dividend of Rs 2.00 per Equity Share.
- The positive demand trend for cement consumption in India during FY26 is attributed to increased construction activities, improvements in rural demand, traction in the real estate sector, and government spending on infrastructure.
- With a net worth of Rs 63,811 crore and cash & cash equivalent coming in at Rs 10,125 crore, Ambuja Cements has agile approaches to inventory and receivables, resulting in a business-level working capital of 28 days.
- As India aims to reach a $10 trillion economy, Ambuja Cements is committed to its role in building the nation's infrastructure, empowering growth, and supporting a greener tomorrow.
