Ambuja Cements Ltd has announced sustainable financial results for 3QFY24-25 (ended 31 December 2024) and 9MFY24-25. The Adani subsidiary announced cement sales volume growth in 3QFY24-25 of 17 per cent YoY to 16.5Mt. EBITDA/t reached INR1038 (US$12) while the company reported an EBITDA margin of 18.4 per cent.
In terms of production costs, kiln fuel cost fell by 10 per cent from INR1.84 to INR1.66/1000kcal thanks to efforts to reduce the cost of domestic coal and increased use of low-cost imported petcoke.
Furthermore, the supply from the Krishnapatnam grinding unit (Penna Cement) to Cochin and Mangalore market through sea routes has commenced and this will help to optimise freight costs and boost profitability, says Ambuja Cements.
The company also improved its environmental footprint through increased use of renewable power sources. The share of waste heat recovery system (WHRS)-based power increased by four percentage points from 12.6 to 16.6 per cent. The solar power energy mix increased by 1.9 percentage points from 2.5 to 4.4 per cent, taking the green power share up by 5.7 percentage points to 21.5 per cent. During this period the company commissioned 200MW solar power at the Khavda plant. The company has commitments to achieve 60 per cent green power by FYFY27-28.
For the 9MFY24-25, cement sales volumes of cement and clicker reached 46.6Mt compared to 42.6Mt in 9MFY23-24. Clinker capacity utilisation increased to approximately 85 per cent.
Orient Cement's acquisition is expected to close in the 4QFY24-25. Meanwhile, the merger of Penna Cement and Sanghi Cement is in progress. Cement capacity is targeted to hit 104Mta by 4QFY24-25, 118Mta by FY25-26 and 140Mta by FY27-28.
