The Adani Group company Ambuja Cement announced on Wednesday that its consolidated net profit for the third quarter ending December 31, 2024, increased by an astounding 242.2 per cent to Rs 1,758.03 crore.
During the same time last fiscal year, the cement manufacturer reported a consolidated net profit of Rs 513.68 crore.
Revenue Q3 FY25
In the meantime, its overall revenue increased by nearly 28 per cent to Rs 5,814.89 crore during the reviewed quarter, compared to Rs 4,547.73 crore during the same period last year. It increased by 30 per cent on a quarterly basis from Q2 FY25's Rs 4,478.24 crore.
But Ambuja's EBITDA fell 29 per cent year over year to Rs 600 crore, and its margins shrank by more than 700 basis points to 11.9 per cent from 19 per cent in the previous quarter.
Management commentry on Q3 FY25
The modest 1.5–2 per cent growth in cement demand during H1 FY'25 is expected to be reversed by higher government spending and better consumption demand in the housing and infrastructure sectors. The pro-infra and housing Budget 2025 is expected to further support this demand, which is predicted to increase by 4-5 per cent in FY'25.
The performance of the cement industry is expected to improve in the upcoming quarters due to the expected recovery in demand, which is aided by government initiatives. When asked about its outlook, Ambuja Cements stated that it would continue to grow faster than the industry.
Stake in orient cement
"The acquisition of 7,76,49,413 equity shares of Orient Cement Limited, representing 37.9 percent of the existing share capital, from the promoters/promoter group of Orient and the purchase of 1,82,23,750 equity shares of Orient, representing 8.9 per cent of the existing share capital, from specific public shareholders of Orient were approved by the Board of Directors of the Company during the quarter that ended on December 31, 2024.
Additionally, the company stated in a stock exchange filing that the Board of Directors has authorized the opening of an offer for up to 5,34,19,567 equity shares at a price of Rs 395.40 per equity share in order to purchase up to 26% of Orient's share capital from the general public.
