Ambuja Cement Q3 Results: Net profit soars 242% YoY to ₹1,758 crore, total income up 28% | Stock Market News

Adani Group stock Ambuja Cement announced its December quarter results on Wednesday, January 29, 2025. The cement company posted a net profit of ₹1,758.03 crore, soaring multifold, over 242 percent as against ₹513.68 crore in the same period last year. Sequentially as well, the profit surged 251 percent from ₹500.66 crore in the September quarter (Q2FY25).

Meanwhile, its total income also advanced almost 28 percent to ₹5,814.89 crore in the quarter under review from ₹4,547.73 crore in the year-ago period. on a QoQ basis, it rose 30 percent from ₹4,478.24 crore in Q2FY25.

Ambuja’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) declined by 29 percent year-on-year to ₹600 crore. Additionally, margins contracted by more than 700 basis points, falling to 11.9 eprcent from 19 percent in the same quarter last year.

For the nine months ending December 2024 (9MFY25), the company’s net profit came in at ₹2,826.08 crore, up almost 57 percent versus ₹1,802.40 crore in the same period last year. Meanwhile, its total income also advanced over 10 percent to ₹15,229.26 crore in 9MFY25 from ₹13,814.83 crore in 9MFY24.

Acquiring Orient Cement

Ambuja Cement announced that its board has approved an open offer to acquire up to 26 percent stake in Orient Cement from public shareholders at a price of ₹395.4 per share.

“During the quarter ended December 31, 2024, the Board of Directors of the Company has approved 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 acquisition of 1,82,23,750 equity shares of Orient representing 8.9 percent of the Existing Share Capital from the certain public shareholders of Orient. Further, the Board of Directors has also approved making an open offer for up to 5,34,19,567 equity shares at a price of ₹395.40 per equity share to acquire up to 26 percent of the share capital of Orient from the public shareholders,” said Ambuja Cement in a stock exchange filing.

The company also reported that the Sindri, Farakka, and Sankrail grinding units are in the advanced stages of completion. Following the completion of the Orient Cements transaction, its operational capacities are set to reach 104 MTPA by Q4FY25, 118 MTPA by FY26, and a target of 140 MTPA by FY28. 

The firm’s net worth has reached an all-time high of ₹62,535 crore, with cash and cash equivalents standing at ₹8,755 crore, which represents 14 percent of the net worth. Additionally, the company added 631 million MT of new limestone reserves in Q3FY25, bringing total reserves to 8,300 million MT. Furthermore, the high-quality limestone reserves from Orient Cement contribute to the existing resources.

Post the earnings announcement, the stock rose as much as 1.6 percent to its day’s high of ₹551.40.