Ambuja Cements Reports 11% Drop in PAT for Q1 FY24-25

31 Jul 2024 , 12:47 PM

On July 31, Ambuja Cements, part of the Adani Group, reported an 11% decline in standalone net profit to ₹571 crore for the first quarter of the fiscal year 2024-25, down from ₹645 crore in the same period last year.

Revenue from operations also decreased by 4.5%, falling to ₹4,515.79 crore compared to ₹4,729.71 crore in the previous year’s quarter. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) dropped 32% to ₹646.3 crore, while the operating margin declined to 14.3% from 20% in Q1 FY24.

“Our ongoing cost improvements position us well to achieve our targeted cost reduction of ₹530 per metric ton by FY’28. With the Penna transaction anticipated to close by Q2 FY’25, our capacity will increase to 89 MTPA, keeping us on track to reach our goal of 140 MTPA by FY’28,” stated CEO Ajay Kapur.

Despite the dip in financial performance, Ambuja Cements’ shares were trading 1.33% higher at ₹683.40 apiece on the BSE following the announcement of the results.