Ambuja Cement reported a 242% YoY rise in net profit for Q3 FY25 to ₹1,758 crore, alongside a 28% increase in total income. The company also announced a strategic acquisition of Orient Cement.
Ambuja Cement, one of India’s leading cement manufacturers and part of the Adani Group, reported exceptional financial results for the third quarter of FY25, with a dramatic 242% year-on-year (YoY) rise in net profit. The company posted a net profit of ₹1,758.03 crore for the December quarter, compared to ₹513.68 crore in the same period last year. Sequentially, the profit surged by 251%, up from ₹500.66 crore in Q2FY25.
The company, based in Gujarat, also saw a nearly 28% increase in total income, which rose to ₹5,814.89 crore from ₹4,547.73 crore in Q3FY24. On a quarter-on-quarter (QoQ) basis, total income climbed by 30% from ₹4,478.24 crore in Q2FY25.
Decline in EBITDA and Margins
Despite the impressive growth in net profit and income, Ambuja Cement reported a decline in its Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA). The EBITDA stood at ₹600 crore, marking a 29% YoY drop. Additionally, the company’s margins contracted by more than 700 basis points, falling to 11.9% from 19% in Q3FY24.
For the nine months ending December 2024 (9MFY25), Ambuja Cement’s net profit stood at ₹2,826.08 crore, reflecting a 57% increase compared to ₹1,802.40 crore in the same period last year. The company’s total income for the first nine months of FY25 also rose by over 10%, reaching ₹15,229.26 crore, compared to ₹13,814.83 crore in 9MFY24.
Expansion Plans and Acquisition of Orient Cement
In an exciting development, Ambuja Cement announced the acquisition of a significant stake in Orient Cement. The company’s board approved an open offer to acquire up to 26% of Orient Cement’s stake from public shareholders at ₹395.4 per share. This acquisition includes 37.9% of the equity shares from Orient Cement’s promoters and 8.9% from public shareholders.
Furthermore, Ambuja Cement revealed that several of its grinding units, including those in Sindri, Farakka, and Sankrail, are nearing completion. With the successful acquisition of Orient Cement, the company plans to boost its operational capacities to 104 million tonnes per annum (MTPA) by Q4FY25, 118 MTPA by FY26, and ultimately 140 MTPA by FY28.
Ambuja Cement’s financial strength is also reflected in its record net worth, which has reached ₹62,535 crore, with cash and cash equivalents totaling ₹8,755 crore—accounting for 14% of its net worth. The company also expanded its limestone reserves by 631 million MT in Q3FY25, bringing the total reserves to 8,300 million MT. The high-quality limestone from Orient Cement will further bolster its resources.
Stock Performance
Following the positive earnings announcement, Ambuja Cement’s stock price rose by as much as 1.6%, reaching a day’s high of ₹551.40. The company’s strong financial performance, expansion plans, and strategic acquisitions have positively impacted investor sentiment.
Ambuja Cement’s performance in Q3 FY25 underscores its growth potential and its pivotal role in the Indian cement industry, driven by its strategic initiatives and operational excellence.
