Ahmedabad – In a remarkable financial performance, Ambuja Cements, the leading cement and building material company of the Adani Group, announced on Monday that it achieved its highest quarterly revenue to date, clocking in at Rs 7,516 crore for the second quarter of FY25. This marks a 1% increase year-on-year, showcasing the company's resilience in a competitive market. The company's success can be attributed to a commendable volume growth of 9% year-on-year, resulting in a production output of 14.2 million tonnes per annum (MTPA) the highest volume recorded in Q2 over the last five years.
This impressive performance has also seen Ambuja's net worth grow by Rs 450 crore in the last quarter, bringing the total to Rs 59,916 crore. Notably, the company maintains a debt-free status and has consistently achieved Crisil AAA (stable) and Crisil A1+ ratings. Ajay Kapur, Whole Time Director and CEO of Ambuja Cements, expressed his satisfaction with the results, stating, "We are glad to deliver another sustained performance aligned with our growth blueprint and setting new benchmarks in efficiency. We continue to focus on innovation, digitisation, customer satisfaction, and ESG as the core elements of our business."
In a strategic move to bolster its market position, Ambuja Cements recently announced the acquisition of Orient Cement Ltd (OCL) for an equity value of Rs 8,100 crore. The transaction involves acquiring a 46.8% stake from current promoters and certain public shareholders, fully funded through internal accruals. Kapur emphasized that this acquisition would further expand the company's footprint across India, aiming for a cement capacity of over 100 MTPA by the end of this fiscal year. Looking ahead, Ambuja anticipates strong demand for cement in the second half of FY25, driven by robust infrastructure projects and ongoing requirements in the housing and commercial sectors.
The introduction of the PMAY Urban Housing 2.0 scheme, with an allocation of Rs 11 lakh crore, along with the government's focus on infrastructure development, is expected to significantly bolster the sector. "The strategic investments in roads, railways, and urban amenities are poised to drive robust growth. We expect demand during FY25 to grow in the range of 4-5%," the company stated in its report. With subsidiaries including ACC Ltd, Penna Cement Industries Ltd, and Sanghi Industries Ltd, Ambuja Cements has successfully enhanced the Adani Group's cement capacity to an impressive 88.9 MTPA. The company operates 20 integrated cement manufacturing plants, 20 cement grinding units, and 12 bulk terminals across the nation, positioning itself as a key player in India's cement industry.
