In This Article:
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Revenue: INR7,516 crores for Q2 FY25; INR15,828 crores for H1 FY25.
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EBITDA: INR1,111 crores with a margin of 14.8% for Q2 FY25; EBITDA per tonne at INR780.
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Operational Cost: INR4,497 per tonne for Q2 FY25, a decline of 4% YoY.
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Cash and Cash Equivalents: INR10,135 crores as of September 30, 2024.
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Net Worth: INR59,916 crores as of the end of H1 FY25, an increase of INR9,073 crores.
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Energy Costs: Decreased by 10% to INR1,276 per tonne in Q2 FY25.
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Transportation Cost: Reduced by 7% to INR1,282 per tonne in Q2 FY25.
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Capacity Expansion: Expected to reach 100+ million tonnes per annum by Q4 FY25.
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Debt Status: Company remains debt-free.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ambuja Cements Ltd (BOM:500425) achieved a year-on-year revenue growth to INR7,516 crores, driven by a strong micro market management strategy and expansion of dealer networks.
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The company remains debt-free and plans to fund its acquisition of a 46.8% stake in Orient Cements Limited through internal accruals.
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Operational costs per tonne decreased by 4% due to a 10% decline in energy costs and a 7% reduction in transportation costs.
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Ambuja Cements Ltd (BOM:500425) secured 70 million tonnes of new limestone reserves in Q2 FY25, enhancing its raw material supply.
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The company is on track to expand its cement capacity to 140 million tonnes by FY28, with several projects underway to increase capacity significantly by FY26.
Negative Points
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Despite revenue growth, the company faced a substantial year-on-year decline in pricing, impacting overall profitability.
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There were delays in some expansion projects due to heavy rains, affecting the timeline for capacity increases.
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The integration of acquired assets like Penna and Sanghi is ongoing, with some operational challenges still being addressed.
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The company's cash flow was impacted by an increase in other current assets and liabilities, leading to a cash outflow.
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Ambuja Cements Ltd (BOM:500425) faces industry-wide pricing pressures, with YoY pricing down significantly, affecting margins.
Q & A Highlights
Q: Can you explain the significant volume growth of 9% year-on-year despite the industry struggling at 1-2%? A: Our volume growth is driven by both core and acquired capacities. The ramp-up of acquired capacities, such as Sanghi, has filled market voids. Additionally, growth in the B2B segment and strategic marketing have contributed to this increase. (Ajay Kapur, CEO)