Ambuja Cements Doubles Profits: Strategic Expansions and Efficiency Drive Growth

In a robust third quarter, Ambuja Cements reported a net profit of Rs 2,620 crore, marking a more than twofold increase year-on-year. The company's revenue also saw a 15% rise. Strategic acquisitions and enhanced market presence are attributed as key growth drivers for the firm.

Ambuja Cements celebrated a significant financial upturn in the October-December quarter, as its net profit surged more than 100% to Rs 2,620 crore compared to the previous year's Rs 1,091 crore. The Adani Group-affiliated company's operational revenue was reported to have climbed by 15%, reaching Rs 9,329 crore, according to the latest earnings release.

Key drivers behind this growth include strategic acquisitions that bolstered capacity and market footprint, according to Ajay Kapur, Ambuja Cements' Whole Time Director & CEO. The company is targeting further expansions to exceed 104 MTPA capacity by Q4 of 2024-25 and eyes 118 MTPA by 2025-26, highlighting a focused growth trajectory.

Efforts to cut costs have helped boost profitability, including increased usage of low-cost imported Petcoke, and optimized logistics that trimmed costs by five percent. Ambuja cites efficiency investments and digitization as vital components to support its path towards market leadership, as demand is projected to rise due to favorable government policies and expanded housing and infrastructure initiatives.

(With inputs from agencies.)