Ambuja Cements Q4 profit drops 9% YoY, slumps over 50% sequentially despite revenue growth
Mumbai: Ambuja Cements, part of the Adani Group, reported a 9% year-on-year decline in consolidated net profit for the fourth quarter of FY25, with earnings slipping to ₹956.27 crore from ₹1,050.58 crore a year earlier.
Sequentially, the bottom line saw a sharper fall, plunging by more than half from ₹2,115.33 crore in the previous quarter.
Despite the profit slide, revenue from operations rose 11.6% year-on-year to ₹9,802.47 crore, up from ₹8,785.28 crore. Compared to the third quarter, revenue grew 16.5% from ₹8,415.31 crore.
Total expenses jumped 14% year-on-year to ₹8,821.70 crore, from ₹7,747.41 crore, and were up 6 % sequentially over ₹8,347.68 crore in Q3.
Earnings before interest, taxes, depreciation, and amortisation (Ebitda) reached a quarterly high of ₹1,868 crore—up 10 % year-on-year—although margins contracted slightly to 18.9% from 19.1% in the same quarter last year.
FY25 performance
For the full year, the cement maker posted a consolidated net profit of ₹4,167.43 crore, a 17% increase over ₹3,573.40 crore in FY24.
Annual revenue rose 3% to ₹33,697.70 crore, up from ₹32,807.93 crore in the previous year, while total expenses climbed 11% to ₹31,768.39 crore from ₹28,664.41 crore.
Outlook
Cement consumption for Q4 FY’25 recorded growth of 6.5-7%. This increase in demand was driven by pick-up in construction activities, improvement in rural demand, traction in the real estate sector, and increase in government spending.
Cumulative growth for FY’25 is likely to stay between 4-5%.
Based on the demand growth trends observed in H2 FY’25, it is projected that cement demand growth in India during FY’26 will continue to benefit from the momentum gained by government spending on infrastructure and construction activities and pro-infra and housing Budget.
Growth for FY’26 is anticipated to range between 7% to 8%.
Dividend
Ambuja Cement's Board of Directors recommended a dividend on equity shares at Rs. 2.0 per share, which is consistent with last year.
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