Ambuja Cements Q2 Results: Net profit down 42.5% YoY to ₹455.96 crore, revenue up 1.2%

Adani Group company Ambuja Cements on Monday reported an 42.5% year-on-year fall in its consolidated net profit (attributable to owners of the company) for the fiscal's second quarter ended September (Q2FY24) to ₹455.96 crore. The company had reported a profit of ₹792.96 crore in the year-ago period. Sequentially, the consolidated net profit was down 28.7%.

Ambuja Cements showed a steady performance throughout the July-September quarter of 2024-25, attaining a volume growth of 9% with 14.2 million tonnes. This was the highest volume achieved in the Q2 series over the last five years. The Adani Group, announced its highest quarterly revenue of ₹7,516 crore, showing a 1.24% rise compared to the previous year.

The company's net value grew to ₹59,916 crore during the quarter, according to the earnings report it released on Monday.

The company credited this achievement to strong volume growth, increased operational scale, value extraction from acquired assets, improved cost leadership, operational efficiencies, and group synergies.

The firm's earnings before interest, taxes, depreciation, and amortization (EBITDA) reached ₹1,111 crore, representing a 15% decline compared to the previous year, with an EBITDA margin of 14.8%.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Ambuja Cement share price has shown strong momentum in today's session, rebounding from the key support of its weekly 89 EMA. This movement has recovered the losses of the past three sessions, suggesting potential for further upward momentum. Overhead resistance is around ₹610, with strong support at ₹555. 

Ajay Kapur, Whole Time Director and CEO, Ambuja Cements, said, "We are glad to deliver another sustained performance aligned to our growth blueprint and setting new benchmarks in efficiency."

"We continue to focus on innovation, digitalisation, customer satisfaction and ESG as the core elements of our business. With our strong foothold across the nation, we are further expanding our footprint in new geographies in-line with our vision."

Following the successful conclusion of the Orient Cement acquisition, the business stated that it is on track to reach 100 million tonne per annum capacity by the end of the fiscal year.

For Ambuja (consolidated), company level working capital is 33 days, demonstrating agility in unblocking money in inventory and receivables.

Strong infrastructure demand, as well as continued needs in the housing and commercial sectors, are expected to drive up cement demand in the second half of 2024-25.

The launch of PMAY Urban Housing 2.0, with an allocation of ₹11 lakh crore, together with the government's sustained emphasis on infrastructure development as the key to economic growth, bodes well for the cement industry, it said.

Strategic investments in roads, railroads, urban and commercial amenities are expected to support substantial growth. Ambuja Cements expects demand to expand by 4-5 percent in 2024-25.

Ambuja Cements and its subsidiaries have increased the Adani Group's cement capacity to 89 MTPA, with 22 integrated cement manufacturing plants and 21 cement grinding units around the country.

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