They acquired 100% shares of Penna Cement Industries for an EV of โน10,422 cr (fully funded through internal accruals). It includes 14 MTPA cement capacity, of which 4 MTPA cement capacity at Jodhpur IU and Krishnapatnam GU is under construction and is to be completed by the seller. Cost to complete the under-construction project is part of EV. In October 2024, Ambuja Cements announced the acquisition of a 46.8% stake in Orient Cement Limited (OCL) at an equity value of โน8,100 crore (โน395.4 per share), fully funded through internal accruals. The transaction triggered an open offer for an additional 26.0% stake from public shareholders, in accordance with regulatory requirements. Through this acquisition, Ambuja added 8.5 MTPA of operational cement capacity and 8.1 MTPA of ready-to-execute projects. OCL also owns a high-quality limestone mine in Chittorgarh, Rajasthan, capable of supporting an additional 6 MTPA of cement capacity in North India. OCL operates with 95 MW of captive power plant (CPP) capacity, 10 MW of waste heat recovery system (WHRS), and 13.5 MW of renewable power, with an additional 19.7 MW of renewable power currently under commissioning. Additionally, all of OCLโs plants are equipped with railway sidings, providing strong logistical advantages. Ambuja Cement Limited offers wide range of products, comprising Ordinary Portland Cement (OPC), Pozzolana Portland Cement (PPC), and Pozzolana Slag Cement (PSC), along with other sustainable and innovative building materials. To further add value to their customers, the company has launched innovative products like Ambuja Plus, Ambuja Cool Walls, Ambuja Kawach and Ambuja Compocem.
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#SALES #GROWTH
In FY25, revenue increased by 6% YoY to โน35,045 cr as. This was due to 10% YoY increase in volume to 65.2 MT and 4% YoY decline in cement realization to โน5,179 per tonne. Cement sales for the year increased by 6% YoY to โน33,768 cr. During the period under review, ready mix concrete (RMC) sales increased by 9% YoY to โน1,401 cr. Furthermore, in FY25 share of blended cement was 78% and premium products as a percentage of trade sales contributed 26%
In FY25, revenue increased by 6% YoY to โน35,045 cr as. This was due to 10% YoY increase in volume to 65.2 MT and 4% YoY decline in cement realization to โน5,179 per tonne. Cement sales for the year increased by 6% YoY to โน33,768 cr. During the period under review, ready mix concrete (RMC) sales increased by 9% YoY to โน1,401 cr. Furthermore, in FY25 share of blended cement was 78% and premium products as a percentage of trade sales contributed 26%
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#EBITDA #GROWTH
In FY25, EBITDA decreased by 7% YoY to โน5,971 cr. During the period gone by, overall cost of producing a ton of cement saw an improvement of 1% YoY. In FY25, other expenses increased on a YoY basis by 18% due to consolidation of Sanghi & Penna operations and increased consumption of spare parts due to overhauling and equipment upgradation work. Logistics cost per tonne for the period was โน1,273, a decline of 6% YoY and power & fuel cost was lower by 6% YoY to โน1,280 per tonne.
In FY25, EBITDA decreased by 7% YoY to โน5,971 cr. During the period gone by, overall cost of producing a ton of cement saw an improvement of 1% YoY. In FY25, other expenses increased on a YoY basis by 18% due to consolidation of Sanghi & Penna operations and increased consumption of spare parts due to overhauling and equipment upgradation work. Logistics cost per tonne for the period was โน1,273, a decline of 6% YoY and power & fuel cost was lower by 6% YoY to โน1,280 per tonne.
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#PAT #GROWTH
In FY25, PAT decreased by 9% YoY to โน5,145 cr. In the period under review, depreciation cost increased by 52% YoY and finance cost decreased by 22% YoY. During the year ended 31st March 2025, the company reassessed their tax positions based on favorable tax assessment orders. As a result, the company reversed various interest received and interest provisions. These amounts totaling to โน2,081 cr have been recorded as other income. For the period under review, other income increased by 128% YoY to โน2,654 cr. During the period, they incurred exceptional expense (net) of โน21 cr on account of various transactions.
In FY25, PAT decreased by 9% YoY to โน5,145 cr. In the period under review, depreciation cost increased by 52% YoY and finance cost decreased by 22% YoY. During the year ended 31st March 2025, the company reassessed their tax positions based on favorable tax assessment orders. As a result, the company reversed various interest received and interest provisions. These amounts totaling to โน2,081 cr have been recorded as other income. For the period under review, other income increased by 128% YoY to โน2,654 cr. During the period, they incurred exceptional expense (net) of โน21 cr on account of various transactions.
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#EBITDA #MARGIN
In FY25, EBITDA margin was 17%, a reduction of 226 bps YoY. The company consumed 28% energy from green and renewable power sources. Currently, WHRS capacity is ~218 MW. As a percentage of revenue raw material cost increased by 196 bps YoY to 18.6% and other expenses increased by 138 bps YoY to 12.8%. Employee cost decreased by 8 bps YoY to 4%, power & fuel cost decreased by 56 bps YoY to 3% and freight cost decreased by 44 bps YoY to 23.7%.
In FY25, EBITDA margin was 17%, a reduction of 226 bps YoY. The company consumed 28% energy from green and renewable power sources. Currently, WHRS capacity is ~218 MW. As a percentage of revenue raw material cost increased by 196 bps YoY to 18.6% and other expenses increased by 138 bps YoY to 12.8%. Employee cost decreased by 8 bps YoY to 4%, power & fuel cost decreased by 56 bps YoY to 3% and freight cost decreased by 44 bps YoY to 23.7%.
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#ROCE
In FY25, EBIT was โน6,138 cr, lower by 0.6% YoY and capital employed was higher by 27% YoY, leading to a reduction in ROCE to 13%.
In FY25, EBIT was โน6,138 cr, lower by 0.6% YoY and capital employed was higher by 27% YoY, leading to a reduction in ROCE to 13%.
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#COMPANY #POTENTIAL
โข India is the 2nd largest producer of cement, with an installed capacity of ~686 million ton (MT). Driven by sustained demand from the housing and infrastructure sectors, cement volumes reached 440-445 million MT in FY25. This growth is projected to continue, reaching 475-480 million MT in FY26. โข Indiaโs per capita cement consumption is 250 kg, far below Chinaโs 1,600 kg, offering substantial growth potential. Cement demand in India is expected to grow 1.2x to 1.5x of GDP. In FY26, Indiaโs GDP is envisaged to grow at ~6.5%. โข The Indian cement industry is set for significant growth, driven by infrastructure projects and urban development. Installed capacity is expected to reach 850 million tonne per annum (MTPA) by 2030 and 1,350 MTPA by 2050. In FY26, the industry is expected to add ~43-45 MTPA capacity. cement demand. cement demand. โข Indian cement sector is fragmented and regional industry - Adani Cement is a pan India player. Their current market share is ~15%, with a target of reaching 20% by FY28. โข The desire for homeownership, particularly in the post-pandemic era, is driving the growth of Indiaโs housing sector across both urban and rural areas. As the largest consumer of cement, the housing sector currently accounts for around 65% of the countryโs โข The Union Budget FY26 has allocated โน11.2 lakh cr for CAPEX, a 10% increase from the revised estimate of โน10.2 lakh cr FY25. The budget prioritizes infrastructure investment across key sectors. The infrastructure sector constitutes approximately 24% of total โข The company management envisages, industry supply to grow by 6% CAGR and demand to grow by ~7%-7.5% CAGR till FY30.
โข India is the 2nd largest producer of cement, with an installed capacity of ~686 million ton (MT). Driven by sustained demand from the housing and infrastructure sectors, cement volumes reached 440-445 million MT in FY25. This growth is projected to continue, reaching 475-480 million MT in FY26. โข Indiaโs per capita cement consumption is 250 kg, far below Chinaโs 1,600 kg, offering substantial growth potential. Cement demand in India is expected to grow 1.2x to 1.5x of GDP. In FY26, Indiaโs GDP is envisaged to grow at ~6.5%. โข The Indian cement industry is set for significant growth, driven by infrastructure projects and urban development. Installed capacity is expected to reach 850 million tonne per annum (MTPA) by 2030 and 1,350 MTPA by 2050. In FY26, the industry is expected to add ~43-45 MTPA capacity. cement demand. cement demand. โข Indian cement sector is fragmented and regional industry - Adani Cement is a pan India player. Their current market share is ~15%, with a target of reaching 20% by FY28. โข The desire for homeownership, particularly in the post-pandemic era, is driving the growth of Indiaโs housing sector across both urban and rural areas. As the largest consumer of cement, the housing sector currently accounts for around 65% of the countryโs โข The Union Budget FY26 has allocated โน11.2 lakh cr for CAPEX, a 10% increase from the revised estimate of โน10.2 lakh cr FY25. The budget prioritizes infrastructure investment across key sectors. The infrastructure sector constitutes approximately 24% of total โข The company management envisages, industry supply to grow by 6% CAGR and demand to grow by ~7%-7.5% CAGR till FY30.
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#COMPANY #OUTLOOK
โข They have ordered 11 General Purpose Wagon Inward System (GPWIS) rakes, of which 11 have been delivered and running in approved circuit. These rakes will enable cost-efficient clinker movement from mother plants to the clinker grinding units. In addition to these, they have also ordered 26 Bulk Cement Freight Consortium (BCFC) rakes for safe and cost-efficient transportation of fly ash from thermal power plants to their facilities. Of these 26 BCFC rakes, 8 rakes have been delivered in FY25. โข The Company aims to optimize lead distances by ~100 kms going forward, thereby improving overall logistics efficiency. In addition, it is targeting a modal shift in logistics, with 10% of cement transportation to be undertaken via sea routes by FY28. Marine to transport cement and clinker. logistics presents significant cost advantages, with estimated savings of ~30% compared to rail and ~60% compared to road transport on a per tonne per km basis. They currently have a fleet size of 14 dedicated sea vessels which enables them to dispatch 3 MT of cement annually, while operating across 11 strategically located terminals. The Company plans to add 10 more sea vessels โข The management aims 60% of their future cement capacity and 83% of clinker operations to be powered by green energy. Currently, 218 MW of Waste Heat Recovery Systems (WHRS), 200 MW of solar capacity, and 99 MW of wind energy from their Khavda facility is operational. Out of the remaining 707 MW of solar and wind power, 70% projects are slated for completion by June 2025, and the balance by December 2026. These investments are expected to reduce power costs by approximately โน90 per tonne by FY28. โข Consolidated capacity stood at 89 MTPA as on 31st March 2025 and ~100 MPTA as on April 2024 (acquisition of Orient Cement in (8.5 MTPA), the 2.4 MTPA expansion at Farakka, and a 0.5 MTPA through de-bottlenecking). The company is actively pursuing a major capacity expansion initiative of 19 MTPA across various regions, setting a clear roadmap to achieve 118 MTPA by FY26. Growth in the current fiscal would be largely driven by organic expansions.
โข They have ordered 11 General Purpose Wagon Inward System (GPWIS) rakes, of which 11 have been delivered and running in approved circuit. These rakes will enable cost-efficient clinker movement from mother plants to the clinker grinding units. In addition to these, they have also ordered 26 Bulk Cement Freight Consortium (BCFC) rakes for safe and cost-efficient transportation of fly ash from thermal power plants to their facilities. Of these 26 BCFC rakes, 8 rakes have been delivered in FY25. โข The Company aims to optimize lead distances by ~100 kms going forward, thereby improving overall logistics efficiency. In addition, it is targeting a modal shift in logistics, with 10% of cement transportation to be undertaken via sea routes by FY28. Marine to transport cement and clinker. logistics presents significant cost advantages, with estimated savings of ~30% compared to rail and ~60% compared to road transport on a per tonne per km basis. They currently have a fleet size of 14 dedicated sea vessels which enables them to dispatch 3 MT of cement annually, while operating across 11 strategically located terminals. The Company plans to add 10 more sea vessels โข The management aims 60% of their future cement capacity and 83% of clinker operations to be powered by green energy. Currently, 218 MW of Waste Heat Recovery Systems (WHRS), 200 MW of solar capacity, and 99 MW of wind energy from their Khavda facility is operational. Out of the remaining 707 MW of solar and wind power, 70% projects are slated for completion by June 2025, and the balance by December 2026. These investments are expected to reduce power costs by approximately โน90 per tonne by FY28. โข Consolidated capacity stood at 89 MTPA as on 31st March 2025 and ~100 MPTA as on April 2024 (acquisition of Orient Cement in (8.5 MTPA), the 2.4 MTPA expansion at Farakka, and a 0.5 MTPA through de-bottlenecking). The company is actively pursuing a major capacity expansion initiative of 19 MTPA across various regions, setting a clear roadmap to achieve 118 MTPA by FY26. Growth in the current fiscal would be largely driven by organic expansions.
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Ambuja Cements 340-440
Expected level 550
Support 300
Expected level 550
Support 300
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