Q1 2025 Ambuja Cements Ltd Earnings Call Transcript
Key Points
- Ambuja Cements Ltd (BOM:500425) achieved a revenue of INR 8,311 crore, driven by strong micro market management and expansion of the dealer network.
- The company has secured 275 million tonnes of new limestone reserves in Q1 FY25, strengthening its resource base.
- Ambuja Cements Ltd (BOM:500425) plans to increase its cement capacity from 89 million tonnes to 140 million tonnes by FY28 through internal accruals and operating cash flows, while remaining debt-free.
- The company has successfully reduced its energy costs by 13% due to better fuel management, resulting in a 17% reduction in kiln fuel costs.
- Ambuja Cements Ltd (BOM:500425) is committed to sustainability, with initiatives such as increasing waste heat recovery capacity and targeting 60% of power requirements from green power by FY26.
- The company experienced a decline in EBITDA per tonne to INR 807, reflecting a margin of 15.4%, which is impacted by lower cement prices.
- Ambuja Cements Ltd (BOM:500425) faced challenges in the East and South regions, leading to lower volume growth in these areas.
- The company has significant capital expenditure plans, including INR 10,000 crore for FY25, which could strain cash flows despite a healthy cash position.
- There is a potential risk of increased maintenance costs during the monsoon season, which could impact EBITDA margins in the short term.
- The integration of newly acquired assets like Penna Cement and Sanghi Industries may pose operational challenges and require significant management focus.
Ladies and gentleman, good day, and welcome to the Ambuja Cement Limited, Q1 and FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded conference. Over to Mr. Jashandeep from Nomura. Thank you, and over to you, sir.
Thank you, operator. Good afternoon, everyone, and thank you for joining the call. Without much ado, I will transfer the call to Mr. Deepak Balwani, Head of Investor Relations. Mr. Deepak, over to you.
Thank you, Jashandeep. It is indeed my pleasure to welcome all of you to Ambuja earnings quarter call for quarter 1 FY 25. Ambuja Cements Limited along with its listed subsidiary, ACC and Sanghi is one of the India's leading cement companies and a member of a diversified Adani Group, the largest and fastest-growing portfolio of diversified sustainable businesses.
I hope you all had a chance to go through our financial results, investor deck and the
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