Synopsis: This Cement inventory got here into focus after revenue surged over 360 % YoY as enlargement and value management strengthened efficiency regardless of softer sequential income.
A number one cement inventory got here into focus after reporting sturdy year-on-year revenue progress regardless of a sequential dip in income and working revenue. The inventory noticed renewed investor curiosity on the again of an improved working margin and aggressive capability enlargement plans, signaling administration confidence in long-term demand progress throughout infrastructure and housing sectors.
Ambuja Cements Restricted opened at Rs. 567.35 and touched an intraday excessive of Rs. 582.70 in opposition to its earlier shut of Rs. 565.25, marking a 3.1 % rise on the day’s excessive. The corporate’s market capitalisation stood at Rs. 1,43,069.14 crore.
What’s the Information?
On a quarter-on-quarter foundation, gross sales declined 10.8 % to Rs. 9,174 crore from Rs. 10,289 crore within the earlier quarter. Working revenue fell 10.2 % to Rs. 1,761 crore from Rs. 1,961 crore, whereas the working revenue margin remained regular at 19 %. Revenue earlier than tax dropped 40 % to Rs. 838 crore from Rs. 1,396 crore. Internet revenue surged sharply by 126.4 % to Rs. 2,302 crore from Rs. 1,017 crore within the earlier quarter. Earnings per share rose from Rs. 3.39 to Rs. 7.14.
On a year-on-year comparability, income grew 21.5 % from Rs. 7,552 crore to Rs. 9,174 crore. Working revenue elevated 58.5 % from Rs. 1,111 crore to Rs. 1,761 crore, and the working margin expanded from 15 % to 19 %, reflecting higher realisation and value effectivity. Revenue earlier than tax rose 12.6 % to Rs. 838 crore from Rs. 744 crore, whereas web revenue jumped by 364.11 % from Rs. 496 crore to Rs. 2,302 crore. Earnings per share improved considerably from Rs. 1.95 to Rs. 7.14.
The corporate stays debt free, with a web value of Rs. 69,493 crore, sustaining its top-tier credit standing of CRISIL AAA (Steady) / CRISIL A1+. Robust money flows proceed to assist its ongoing capital expenditure programme.
Feedback from Administration
Mr. Vinod Bahety, Complete Time Director & CEO, Ambuja Cements, stated:
“Our capability enlargement is nicely timed to capitalize on this constructive momentum. We have now upped our FY28 goal capability by 15 MTPA from earlier 140 MTPA to now 155 MTPA. This improve of 15 MTPA from debottlenecking initiatives will come at a a lot decrease capex of USD 48/MT.”
“The management journey has resulted in a 5% decrease price of gross sales YoY, and enabled our current belongings to ship a PMT EBITDA of ~Rs. 1,189 PMT, and an general EBITDA of Rs. 1,060 PMT.”
“Our outlook for the steadiness interval of FY26 stays constructive. We stay optimistic about delivering double digit income progress and 4 digits PMT EBITDA. Exit of FY26 we goal to ship a complete price of Rs 4,000 PMT, and additional 5% discount YoY for the following two years, serving to us to attain the associated fee goal of Rs. 3,650 PMT by FY28.”
Operational Highlights
The corporate has raised its FY28 capability goal by 15 MTPA to 155 MTPA, up from 140 MTPA beforehand, with this incremental capability to be achieved by means of debottlenecking at a a lot decrease capex of USD 48 per tonne. Over the following 12 months, Ambuja will set up 13 blenders throughout its vegetation to boost product combine, improve premium cement share, and enhance realisations. Additional, optimisation of plant logistics infrastructure is predicted to carry utilisation of its current 107 MTPA capability by 3 % over the following two years.
Operationally, a 4 MTPA new kiln line at Bhatapara (Chhattisgarh) has began trial runs, whereas a 2 MTPA grinding unit at Krishnapatnam is now operational. An extra 7 MTPA capability throughout three different areas is predicted to go onstream within the third quarter. On the renewable power entrance, the corporate commissioned 200 MW of solar energy through the quarter, taking its whole renewable capability to 673 MW. That is projected to rise to 900 MW by the top of FY26 and attain 1,122 MW by FY27.
Outlook
Cement demand in Q2 FY26 grew round 4 % year-on-year. With the current GST discount from 28 % to 18 %, bettering enterprise sentiment, and better funding from each private and non-private sectors, demand is predicted to strengthen additional. The corporate reiterated its annual progress steering of 7-8 %.
In regards to the Firm
Ambuja Cements Restricted, a part of the Adani Group, is among the many world’s prime ten constructing supplies firms. With a cement capability of round 107 MTPA throughout 24 built-in vegetation and 22 grinding items, the corporate is main India’s sustainable development drive. It goals to attain 1 GW of renewable power and 376 MW of Waste Warmth Restoration Techniques by FY28. Ambuja has achieved 12x water positivity and 11x plastic negativity, with its net-zero targets validated by the Science Based mostly Targets initiative (SBTi). It operates a captive port community with ten terminals for environment friendly bulk cement motion and has been recognised amongst ‘India’s Most Trusted Cement Manufacturers’ by TRA Analysis and as an ‘Iconic Model of India 2024’ by The Financial Occasions.
-Manan Gangwar
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