Conference Call with Ambuja Cements Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Cement & Cement Products company Ambuja Cements announced Q1FY25 results: Financial Highlights: Higher Volume along with improved operational parameters resulted in growth in all business parameters. EBITDA PMT at Rs 807, EBITDA Margin of 15.4%. Net worth increased by Rs 8,620 crore during quarter and stands at Rs 59,465 crore, company remains debt free & continues to maintain Crisil AAA (stable) / Crisil A1+ ratings. The Cash & Cash Equivalent stands at Rs 18,299 crore enables accelerated growth in future. For Ambuja (consolidated) business level working capital stands at 30 days reflecting agility in unblocking the funds in inventory and receivables. Operational Highlights: Group synergies continue to facilitate cost reduction journey, complemented by increasing footprint and capacities. Green power share at 18.4%, will improve to ~31 % by FY’25 and 60% by FY’28, this will contribute to reduction in overall cost of power by 33%, giving booster to EBITDA. Higher linkage coal volume and improved coal volume from Gare Palma (captive coal mine), has contributed to 17% reduction in Kiln fuel cost (Consolidated) from Rs 2.08 to 1.73 per ’000 Kcal. Integration of recently acquired Tuticorin GU and Penna Cement (under closing) will help to further improve market share, overall profitability and RoCE. Ajay Kapur, Whole Time Director & CEO, Ambuja Cements, said, “We have delivered another sustainable performance and our focus on innovation, digitisation, customer satisfaction and ESG is at the heart of our success. Our persistent performance sets the tone for the rest of the financial year, as we expand our footprint and capacities across new geographies. Our continued improvement on cost brings visibility of achieving the targeted cost reduction of Rs 530 PMT by FY’28. With Penna transaction expected to be closed by Q2 FY’25, our capacity will go to 89 MTPA and well on track to achieve our 140 MTPA plan by FY’28.” Result PDF