Ambuja Cements shares surged over 3% today, hitting ₹564.15 after the company posted better-than-expected earnings for Q2 FY25. The company reported a consolidated profit of ₹500 crores, significantly exceeding CNBC-TV18 poll estimates of ₹301 crores. The stock saw a positive movement in response to the stronger-than-expected financial performance.
For the quarter ended September 2024, Ambuja Cements recorded revenue from operations at ₹7,516 crore, a marginal increase of 1% year-on-year. However, despite the revenue growth, EBITDA took a hit, falling 15% YoY to ₹190 crore. This was reflected in the EBITDA margin, which contracted to 16.15%, although the company outperformed estimates which had pegged the margin at 11.7%.
Key financial metrics for Q2 FY25:
- Revenue from operations: ₹7,516 crore (+1% YoY)
- PAT: ₹500 crore vs CNBC-TV18 poll estimate of ₹301 crore
- EBITDA: ₹190 crore (-15% YoY)
The company’s efforts to optimize operational efficiencies and cut costs helped it exceed profit expectations. However, the overall margin compression was attributed to rising input costs, notably in power and fuel expenses, which stood at ₹1,817.5 crore during the quarter.
Ambuja Cements remains optimistic about improving performance in the upcoming quarters with anticipated recovery in the construction sector, driving demand for cement across regions.
