Ambuja Cements Q2 FY25 Results: Adani Group's Ambuja Cements reported a 42 percent decline in its consolidated net profit in the second quarter of FY25 to Rs 456 crore, mainly due to weak cement prices and sluggish demand, according to Money Control. However, consolidated revenue from operations grew marginally by 1 percent to Rs 7,516 crore.

The cement giant's profit fell short of expectations. A Bloomberg poll of brokerages had pegged Ambuja Cements' second-quarter net profit at Rs 510 crore and revenue at Rs 7,171 crore. Realizations remained under pressure during the July-September quarter amid weak cement prices, while heavy rains and shortage of labor and other inputs dampened demand growth. Like other cement companies, experts had forecast slower revenue growth for Ambuja Cements and a sharp fall in its profits.

Following the result announcement, Ambuja Cements'Cements' share price surged and was trading at Rs 569.55 on NSE, up 3 percent from its previous close price. The company's earnings before interest, tax, depreciation,, and amortization stood at Rs 1,111 crore, down 15 percent year-on-year, while margins stood at 14.8 percent. Operating costs declined 4 percent year-on-year to Rs 4,497 per metric tonne, benefiting from a 13 percent reduction in furnace fuel cost, partly due to increased use of low-cost imported petcoke and e-auction coal.

Ambuja's sales volumes (clinker and cement) grew 9 percent year-on-year to 14.2 million tonnes, reaching its highest Q2 volume in 5 years. Realizations remained under pressure during the July-September quarter amid weak cement prices, while heavy rains and shortage of labor and other inputs dampened demand growth. Like other cement companies, experts had expected a sharp decline in Ambuja Cements' revenues along with slower growth.

Ambuja Cements Q2FY25 results are impacted by recent acquisitions, which limits comparisons with previous periods. Ambuja's subsidiary ACC acquired the remaining 55 percent stake in Asian Concretes & Cements Private Limited (AFCPL) and its subsidiary Asian Fine Cements Private Limited (ACCPL) in January 2024. Subsequently, ACC remeasured its previous 45 percent stake and recognized a gain under exceptional items in March 2024.