Ambuja Cements Share Price Dips 2.77%; Sees 17% Volume Growth in Q3 FY 2025

On Wednesday, Ambuja Cements announced sustainable financial results for Q3 ended December 31, 2024, and nine months (9M) of FY 2025.

Post the announcement, on January 30, 2025, Ambuja Cements share price (NSE: AMBUJACEM) opened at ₹528.30, up from its previous close of ₹522.10. However, at 9:37 AM, the share price of Ambuja Cements was trading at ₹507.65, down by 2.77% on the NSE.

Q3 FY 2025 Financial Highlights

The company achieved a 17% YoY volume growth, recording its highest-ever cement sales volume of 16.5 million tonnes in a single quarter. The EBITDA per tonne stood at ₹1,038, with an EBITDA margin of 18.4%.

Ambuja Cements continues to maintain a strong financial position, with its net worth increasing by ₹2,619 crore during the quarter to ₹62,535 crore. The company remains debt-free, with cash and cash equivalents of ₹8,755 crore, accounting for 14% of its net worth.

Other Key Updates

During Q3 FY25, Ambuja Cements commissioned a 200 MW solar power plant in Khavda, a move that is expected to reduce power costs in the coming quarters. Additionally, the company added 631 million tonnes of limestone reserves, bringing the total reserves to 8.3 billion tonnes, ensuring long-term operational stability.

Ambuja also reiterated its commitment to achieving net-zero emissions by partnering with Finland-based Coolbrook to leverage zero-carbon rotodynamic heating technology.

On the capacity front, Ambuja is on track to expand its capacity to 104 million tonnes per annum (MTPA) by Q4 FY25, 118 MTPA by FY26, and 140 MTPA by FY28.

The company also reported an EPS of ₹8.59 for Q3, up ₹4.72 YoY, and expects to complete the Orient Cement acquisition by Q4 FY25. The company stated that a merger with Penna and Sanghi Cements is in progress.

Outlook

Looking ahead, Ambuja is poised to benefit from improved demand in housing and infrastructure, supported by increased government spending and the pro-infra Budget 2025. Cement demand is expected to grow by 4-5% in FY25, positioning Ambuja to outpace industry growth.

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