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Ambuja Cements Ltd, part of billionaire Gautam Adani-led Adani Group, announced its financial performance for the quarter ending December today, January 30, reporting a consolidated net profit of ₹367 crore, down 86% from ₹2,663 crore in the same period last year.

The sharp drop in net profit for the quarter can be attributed to a significant rise in operating expenses. Power and fuel costs, as well as freight and forwarding expenses, jumped to ₹4,970 crore from ₹4,105 crore in the same period last year.

Net profit was also impacted by a one-time charge of ₹107 crore related to the implementation of the new labour codes.

Higher costs also weighed on the company’s operating performance, with EBITDA falling to ₹1,353 crore, a 21% drop from ₹1,712 crore reported in the same period last year.

The EBITDA margin contracted by 500 basis points year-on-year to 13.2%, compared with 18.2% in the corresponding quarter of last year.

On the top line, the company reported consolidated revenue from operations rising to ₹10,180 crore, up 20% year-on-year from ₹8,498 crore in Q3FY25.

In terms of volumes, the Adani Group company reported its highest-ever cement volumes of 18.9 million tons during the quarter, marking a 16.6% year-on-year increase from 16.2 million tons in the same period last year.

Mr. Vinod Bahety, Whole-Time Director & CEO of Ambuja Cements, said, "We are now working to address specific cost-related issues, particularly power costs, the share of green power, fuel efficiency, improvements in WHRS/AFR, and logistics costs. These are part of the blueprint to achieve the targeted cost of ₹3,650 per MT by March 2028."

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

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