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Informist, Tuesday, Apr. 29, 2025

 

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--Ambuja Cements Jan-Mar consol net profit INR 9.56 bln
--Analysts saw Ambuja Cements Jan-Mar consol net profit INR 8.09 bln
--Ambuja Cements Jan-Mar consol net profit INR 9.56 bln vs INR 10.51 bln
--Ambuja Cements Jan-Mar consol revenue INR 98.02 bln vs INR 87.85 bln
--Ambuja Cements to pay INR 2 per share dividend
--Ambuja Cements FY25 consol PAT INR 41.67 bln vs INR 35.73 bln year ago
--Ambuja Cements FY25 consol revenue INR 336.98 bln vs INR 328.08 bln yr ago
--Ambuja Cements Jan-Mar fuel, power costs INR 22.99 bln vs INR 19.94 bln
--Ambuja Cements Jan-Mar raw material costs INR 15.78 bln vs INR 12.86 bln
--Ambuja Cements Q4 consol operating EBITDA INR 18.68 bln vs INR 16.99 bln
--Ambuja Cements Jan-Mar consol operating EBITDA margin 18.9% vs 19.1%
--Ambuja Cements Jan-Mar volume at 18.7 mln tn, up 13% on year
--Ambuja Cements FY25 volume 65.2 mln tn, up 10% on year
--Ambuja Cements FY25 consol operating EBITDA margin 17.0% vs 19.3%

 

By Rajesh Gajra

 

NEW DELHI – The benefit of a jump in other income due to reversal in tax provisions and a double-digit increase in volume and revenue was offset by a substantial increase in total tax expenses, rise in key input costs, and a fall in government grants, resulting in Ambuja Cements Ltd.'s consolidated net profit to decline 9% on year to INR 9.56 billion in the March quarter. The reported net profit number was, however, above analysts' estimate of INR 8.1 billion.

 

The consolidated revenue from operations of the company increased 12% on year to INR 98.03 billion, which was below the Street view of INR 99.1 billion. The net profit decline in the March quarter was the third decline in the last four quarters with the December quarter being the exception. The consolidated operating earnings before interest, tax, depreciation, and amortisation of Ambuja Cements increased 10% on year to 18.68 billion.

 

The consolidated volume of Ambuja Cements in the March quarter was up 12.6% on year at 18.7 million tonnes, aided by a 22.1% jump in standalone volume to 11.6 million tonnes. ACC, in which Ambuja Cements holds 50.05% stake as a promoter, recorded a standalone volume growth of 13.3% on year at 11.9 million tonnes, while volume from recently acquired Sanghi Industries increased 12.5% to 900,000 tonnes.

 

Revenue growth of Ambuja Cements lagged cement volume growth in the March quarter indicating a fall in realisation. The consolidated revenue from operations from cement sold increased 11.2% on year to INR 98.89 billion. On a standalone basis, Ambuja Cements' revenue from operations rose 18.8% to INR 56.81 billion, trailing the 22.1% volume growth by a wide margin.

 

The 10% on-year rise in consolidated operating EBITDA of Ambuja Cements to INR 18.68 billion was aided by a 30% jump in standalone operating EBITDA to INR 10.38 billion, and dragged down by a 4.4?cline in ACC's operating EBITDA to INR 8.00 billion and a 39?ll in operating EBITDA from Sanghi Industries to INR 360 million.

 

The consolidated operating EBITDA of the company was affected adversely by a substantial increase of 15% on year in power and fuel costs to INR 22.99 billion, a 19% jump in other expenses to INR 12.04 billion, and a 23% rise in cost of materials consumed to INR 15.78 billion. The consolidated operating EBITDA margin contracted to 18.9% in the March quarter from 19.1% a year ago, on the back of ACC's standalone operating EBITDA margin contracting sharply to 13.3% from 15.5%, and Sanghi Industries' operating EBITDA margin contracting to 10.9% from 20.6%. Ambuja Cements' standalone operating EBITDA margin, however, expanded to 18.3% from 16.7%.

 

The bottom line of Ambuja Cements was aided by a 2.5-time jump in other income to 5.73 billion. The other income included the effect of reassessments of tax positions in respect of certain tax liabilities and provisions. It also included other credits pertaining to the tax reassessment.

 

But Ambuja Cements' consolidated net profit was hit the most by a 6.73-time increase on year in tax costs to INR 4.97 billion in the March quarter. This was on account of a on-year rise of INR 1.10 billion in current tax to INR 3.20 billion and a substantial on-year increase of INR 3.02 billion in tax charge relating to earlier periods.

 

The bottom line was also affected by a substantial rise of 71% on year in depreciation and amortisation expenses to INR 7.86 billion. A 21% on-year fall in government grants including duty credits or refunds to INR 8.61 billion also hit the company's consolidated bottom line.

 

For the full year 2024-25 (Apr-Mar), Ambuja Cements' consolidated net profit rose 17% on year to INR 41.67 billion while the revenue increased by only 2.7% to INR 336.98 billion. The consolidated sales volume of the company in FY25 was up 10% to 65.2 million tonnes. The operating EBITDA margin, however, contracted to 17% in FY25 from 19.3% in FY24. The company announced a dividend of INR 2 per share.

 

Ambuja Cements declared its March quarter results with the exchanges at 1434 IST, and shares of the company fell 1.2% within four minutes to INR 538.65 at 1438 IST. Shares ended Tuesday 2% lower at INR 533.95 on the National Stock Exchange of India.  End

 

Edited by Akul Nishant Akhoury

 

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