Ambuja Cements Q2 Results: Net Profit Drops 22% Amid Revenue Growth - Read Now 

Ambuja Cements Q2 Results: Ambuja Cements, a leading cement manufacturers in India, declared results for the Q2FY25 quarter. The net profit at ₹500.6 crore is down 22% year-on-year in comparison with ₹643.84 crore for the like period of last year, while its revenue from operation has been up by 6.1% over the July-September period to ₹4,213.24 crore. All said, this is all testimony to the expansion for the company across India without profitability headwinds, however.

Ambuja Cements Q2 Results: Revenue declines and losses increase
However, though the profit dropped, company's EBITDA suffered a decline of 12% to stand at ₹680.8 crore while the same period of previous year reported a value of ₹773 crore. Decline in this was sharply contributed by pressure in markets and cost. The sharp contraction of the margin contracted 340 basis points, with the rate at 16.1%. Consolidated net profit fell 52% to ₹472.89 crore compared with the same period last fiscal, and modest growth of 1.2% at the revenue level to ₹7,516.1 crore.

The figures in the Q2 results of the company are incomparable with that of last fiscal due to contributions from Penna Cement and Asian Concretes and Cements Ltd acquired by ACC this quarter.

Ambuja Cements Q2 Results: Gains in the Stock following declaration of results

Ambuja Cement had 4.5 percent up surge, in share value though it's having relatively low earnings; still shares on NSE trade at ₹577.65 while the similar is done in BSE trading of its share that's seen a ₹578.90 on March 1st, when its long term strategy makes Ambuja Cement the hub for increasing confidence in such stocks amongst the investors to achieve huge amount of increase in Market capitalization; ₹ 1, 42,417.80 crores by end date.

We are happy to once again report consistent performance with growth in line with our vision roadmap and set new heights of efficiency. We continue to follow the strategy that focuses on innovation, digitalization, customer satisfaction, and ESG as the core of our business, said Ajay Kapur, Whole Time Director and CEO at Ambuja Cements.

Ambitious expansion plans which would help the company enhance the capacity
Ambuja Cements is driving on expansion and has plans to achieve cement production capacity at more than 100 MTPA by the end of the fiscal year. Kapur said that successful completion of the Orient Cement transaction would be a major factor toward achieving this goal, wherein the company will strengthen its footing in various markets across India.

With strong fundamentals and a growth focus, Ambuja Cements is well-positioned to ride over the short-term pressures on profit margins. Geographical expansion efforts and due attention towards sustainable business practices will certainly catapult its market position and operational efficiency, in the long run.

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