Ambuja Cements Achieves Record 157% Profit Surge in Q4 FY25, Driven by 16.5M Tonnes Sales and Expansion Plans
Ambuja Cements has posted a stellar performance in Q4 FY25, reporting a remarkable 157% surge in net profit, driven by record cement sales of 16.5 million tonnes. This significant growth comes despite challenges in other key metrics, showcasing the company’s operational resilience and strategic market positioning.
As demand for cement continues to rise amid government-backed infrastructure projects, Ambuja Cements is not only bolstering its market presence but also expanding its production capacity and resource base to sustain future growth. With plans for increased capacity and ongoing acquisitions, Ambuja is poised to lead the industry into the next phase of growth.
Strategic Investments and Operational Efficiency
Ambuja Cements has been working on operational efficiency and market development strategies, gaining fruit. Some aspects of the strategy also focus on digital transformation and infrastructure upgrading. For instance, the company has recently added 200 MW of solar power at Khavda, and the power costs are expected to be cut in the next quarters.
Further, the company also managed to enhance its limestone reserves by 631 million MT in the December quarter, thereby taking the total reserves to 8.3 billion MT. This resource enhancement enables continued production capacity, as the company wants to increase the capacity to 104 MTPA by Q4 FY2025, with other targets set for 2026 and 2028.
Future Outlook and Market Positioning
Moving to the future, Ambuja Cements expects the demand for cement to improve based on better consumption of housing and infrastructure and improved government spending. The company anticipates a demand growth of 4-5% in FY25 based on government policies endorsed in the pro-infra and housing-focused Budget 2025.
Given the current market environment, these opportunities are ideal for Ambuja Cements. The Company anticipates growing at a faster pace than the overall industry. The ongoing acquisitions of Penna and Sanghi and the near-future acquisition of Orient Cement will enhance the company’s market presence and operating capacity.
