Q2 2025 Ambuja Cements Ltd Earnings Call Transcript
Key Points
- Ambuja Cements Ltd (BOM:500425) achieved a year-on-year revenue growth to INR7,516 crores, driven by a strong micro market management strategy and expansion of dealer networks.
- The company remains debt-free and plans to fund its acquisition of a 46.8% stake in Orient Cements Limited through internal accruals.
- Operational costs per tonne decreased by 4% due to a 10% decline in energy costs and a 7% reduction in transportation costs.
- Ambuja Cements Ltd (BOM:500425) secured 70 million tonnes of new limestone reserves in Q2 FY25, enhancing its raw material supply.
- The company is on track to expand its cement capacity to 140 million tonnes by FY28, with several projects underway to increase capacity significantly by FY26.
- Despite revenue growth, the company faced a substantial year-on-year decline in pricing, impacting overall profitability.
- There were delays in some expansion projects due to heavy rains, affecting the timeline for capacity increases.
- The integration of acquired assets like Penna and Sanghi is ongoing, with some operational challenges still being addressed.
- The company's cash flow was impacted by an increase in other current assets and liabilities, leading to a cash outflow.
- Ambuja Cements Ltd (BOM:500425) faces industry-wide pricing pressures, with YoY pricing down significantly, affecting margins.
Ladies and gentlemen, good day, and welcome to Ambuja Cements Limited Q2 FY25 earnings conference call hosted by Motilal Oswal Financial Services Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjeev Kumar Singh from Motilal Oswal Financial Services Limited. Thank you and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining the call. Without much delay, I will transfer the call to Mr. Deepak Balwani, Head of Investor Relations. Mr. Deepak, over to you.
Thank you, Sanjeev. Wish you all a very happy and a prosperous Diwali. It is my pleasure to welcome you all to Ambuja's second-quarter FY25 earnings call. Ambuja Cement Limited is one of India's leading cement companies and a member of the diversified Adani Group, the largest and fastest growing portfolio of diversified sustainable businesses.
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