Ambuja Cements Q2 Results: Ambuja Cements, part of the Adani Group, reported a 42% year-on-year drop in consolidated net profit to Rs 456 crore for Q2 FY25, largely due to low cement prices and subdued demand. However, consolidated revenue from operations saw a slight increase of over 1% to Rs 7,516 crore.
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Following the results, Ambuja Cements’ share price rose, trading at Rs 577.85 on the NSE, marking an increase of over 4.5% from the previous close. Operating costs were reduced by 4% year-on-year to Rs 4,497 per metric tonne, partly due to a 13% decrease in kiln fuel costs from using more low-cost imported petcoke and e-auction coal.
Ambuja recorded a 9% rise in sales volume to 14.2 million tonnes for clinker and cement, marking the highest Q2 volume in five years. Despite this, realisations remained under pressure, affected by weak prices and demand challenges from heavy rains and a shortage of labor and inputs.
The company’s operating EBITDA fell to Rs 1,111 crore, down from Rs 1,302 crore in Q2 last year, resulting in a lower EBITDA margin of 14.8% versus 17.5% previously. EBITDA per tonne also declined to Rs 780 from Rs 995.
The recent acquisitions of ACCPL and Sanghi Industries impacted results, making Q2 FY25 figures less comparable with last year’s due to their consolidation timelines.
