Ambuja Cements posts strong Q3 profit growth, charts ambitious expansion plans

Ambuja Cements, the Adani Group-owned cement manufacturer, reported an impressive 163.9% increase in consolidated net profit for Q3 FY25, reaching ₹2,175.33 crore compared to ₹824.25 crore in the same quarter last year. On a standalone basis, the company's performance was even more striking, with net profit soaring 242% year-on-year to ₹1,758.03 crore from ₹513.68 crore.

Revenue Performance and Market Response

The company registered a modest 4.5% growth in consolidated revenue from operations, climbing to ₹8,415.31 crore from ₹8,052.42 crore year-on-year. Despite the strong profit numbers, the market response was cautious, with Ambuja Cements' shares trading down nearly 4.63% at ₹518 on the National Stock Exchange (NSE) following the results announcement.

Expansion Strategy and Future Outlook

Whole Time Director & CEO Ajay Kapur emphasized the company's commitment to sustainable growth through innovation, digitization, and customer satisfaction. The cement maker has set ambitious expansion targets, aiming to achieve a capacity of 104 MTPA by Q4 FY25 and further increasing it to 118 MTPA by FY26. This growth strategy is being supported by strategic acquisitions that have already enhanced the company's market presence and production capabilities.

Environmental and Strategic Focus

The quarterly results reflect Ambuja Cements' balanced approach to growth, with a strong emphasis on Environmental, Social, and Governance (ESG) principles. The company's expansion into new geographical markets, coupled with its focus on digitization and innovation, demonstrates its commitment to long-term sustainable growth while delivering value to stakeholders.

At close on Wednesday, the shares of Ambuja Cements were 3.88% lower at ₹522.10 per share as compared to the previous close of ₹543.15 per shares on the NSE.