Ambuja Cements Achieves Record Sales Amid Expansion Plans
Ambuja Cements is making headlines with its impressive quarterly results and ambitious growth strategy. For the fourth quarter of FY25, the company reported a record-breaking sales volume of 18.7 million tonnes, marking a 12.65% increase compared to the same period last year. With this achievement, Ambuja is setting the stage for significant advancements in the cement industry.
Financial Highlights and Record Sales
In the fiscal year ending March 31, Ambuja Cements generated ₹33,677.7 crore in revenue from operations, alongside a net profit of ₹1,145.1 crore attributed to its shareholders. These figures reflect the company’s robust position in a competitive market, although it’s worth noting that the recent consolidation of Penna Cements’ financials since August 2024 makes year-over-year comparisons challenging.
- Record Quarterly Sales: 18.7 million tonnes in Q4FY25
- Revenue: ₹33,677.7 crore for FY25
- Net Profit: ₹1,145.1 crore
Expanding Capacity to Meet Demand
Following the acquisition of Orient Cement, Ambuja Cements has boosted its cement production capacity to over 100 million tonnes per annum (mtpa) as of April 29. The company has set an ambitious target to increase this capacity to 118 mtpa by the end of FY26. Vinod Bahety, the company’s whole-time director and CEO, stated, “We are actively pursuing organic expansions across various locations, which will facilitate our goal of reaching 118 mtpa by the close of FY 2026.”
Strategic Investments for Growth
To support its expansion efforts, Ambuja Cements plans to invest ₹6,000 crore in growth-related capital expenditures throughout FY26. Additionally, the company will allocate ₹2,500–3,000 crore for capital expenditure aimed at enhancing operational efficiency. This strategic investment underscores Ambuja’s commitment to maintaining its competitive edge.
Solid Financial Position and Dividends
The company’s net worth surged by ₹12,969 crore during FY25, reaching ₹63,811 crore. Cash and cash equivalents stood at ₹10,125 crore as of March 31. In light of these positive developments, Ambuja’s Board of Directors has proposed a consistent dividend of ₹2 per equity share, aligned with last year’s distribution.
Cement Consumption Trends
Cement demand is also on the rise, with consumption growing by 6.5–7% in Q4FY25. This growth can be attributed to several factors, including a rebound in construction activities, increased rural demand, momentum in the real estate sector, and heightened government spending. Overall, cumulative cement consumption growth for FY25 is projected at 4–5%.
Looking ahead, Ambuja predicts that cement demand in India will continue to flourish, driven by governmental investments in infrastructure and construction. The anticipated growth for FY26 is between 7% to 8%, reflecting a positive outlook for the industry.
By focusing on expansion and strategic investments, Ambuja Cements is not only securing its market position but also contributing to the broader growth of the cement sector in India.
