Q3 2025 Ambuja Cements Ltd and ACC Ltd Earnings Call Transcript
Key Points
- Ambuja Cements Ltd (BOM:500425) achieved a revenue of INR9,329 crores in Q3 FY25, driven by strong market management and expansion of its dealer network.
- The company commissioned a 200-megawatt solar power project in Gujarat and secured 631 million tonnes of new limestone reserves.
- Operational costs decreased due to a 7% decline in energy costs and a 6% reduction in transportation costs.
- EBITDA stood at INR1,712 crores with a margin of 18.4%, supported by cost improvements and increased direct dispatch to customers.
- The company is on track to expand its cement capacity to 140 million tonnes by FY28, with several new facilities and expansions underway.
- The operating performance was weaker than expected, with EBITDA per tonne dropping to INR537 when adjusted for incentives.
- Realization per tonne decreased sequentially, despite industry-wide price hikes in December and January.
- The newly acquired assets, Sanghi and Penna, are still underutilized, operating at sub-40% and sub-50% capacity, respectively.
- There was a significant increase in other expenses, partly due to higher consumption of stores and spares for maintenance.
- The company faces challenges in ramping up the newly acquired assets to full operational efficiency, impacting overall cost structures.
Ladies and gentlemen, good day, and welcome to the Ambuja Cements Limited Q3 FY25 conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Parvez Qazi from Nuvama. Thank you, and over to you, sir.
Thank you, Sagar. Good afternoon, everyone, and thank you for joining the call. Without much delay, I will transfer the call to Mr. Deepak Balwani, Head of Investor Relations. Mr. Deepak, over to you.
Yes. Thank you, Parvez. On behalf of Ambuja Cements, I extend a very warm welcome to all the participants on the third quarter FY25 earnings call. Ambuja Cement Limited is one of the India leading cement companies and a member of a diversified Adani Group, the largest and the fastest-growing portfolio of diversified sustainable businesses. Our financial results, investor presentation and press release are now available on stock
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