Ambuja Cements Ltd. — Interim / Quarterly Report 2025

Jul 31, 2024

==> picture [61 x 26] intentionally omitted <==

==> picture [71 x 48] intentionally omitted <==

31[st] July, 2024

National Stock Exchange of India BSE Limited Luxembourg Stock Limited Exchange Scrip Code: Scrip Code: AMBUJACEM 500425 Code: US02336R2004

Sub.: Media Release on – “Ambuja achieves sustainable performance in Q1 FY’25”

Dear Sir/ Madam,

This is in continuation to our earlier letter dated 31[st] July, 2024 wherein Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter ended 30[th] June, 2024 have been filed with stock exchanges.

In this regard, please find attached herewith the Media Release on the captioned subject.

The said media release will also be uploaded on the Company’s website at www.ambujacement.com.

Kindly take the same on your record.

Yours Sincerely For Ambuja Cements Limited Manish Digitally signed by Manish Vinodchandra Mistry Vinodchandra DN: cn=Manish Vinodchandra Mistry, o, ou, email=Manish.Mistry@adani.com, c=US Mistry Date: 2024.07.31 12:23:09 +05'30'

Manish Mistry Company Secretary & Compliance Officer Encl: as above

Ambuja Cements Limited Registered Office: Adani Corporate House Shantigram, S. G. Highway, Khodiyar, Ahmedabad – 382 421, Gujarat, India Ph +91 79-2656 5555 www.ambujacement.com CIN: L26942GJ1981PLC004717

==> picture [43 x 23] intentionally omitted <==

==> picture [50 x 36] intentionally omitted <==

Media Release

Ambuja achieves sustainable performance in Q1 FY’25

Operating EBITDA Rs. 1,280 Cr, PAT Rs. 790 Cr Operating cost improved by 3% YoY at Rs. 4,437 PMT Cash & Cash equivalent at Rs. 18,299 Cr

EDITOR’S SYNOPSIS

• Q1 Operating EBITDA at Rs. 807 PMT, EBITDA margin of 15.4%

• Quarterly EPS (diluted) at Rs. 2.65

• Taken lead in ESG, Net Zero commitment by 2050, near-term targets validated by SBTi, first of its kind in the sector

• Added 275 Mn MT limestone reserves in Q1 FY’25

Ahmedabad, 31[st] July 2024: Ambuja Cements, the cement and building materials flagship of the diversified Adani Group, has announced sustainable results for Q1 FY’25, supported by cost leadership, improved efficiencies and growth.

Mr. Ajay Kapur, Whole Time Director & CEO, Ambuja Cements, said, “We have delivered another sustainable performance and our focus on innovation, digitisation, customer satisfaction and ESG is at the heart of our success. Our persistent performance sets the tone for the rest of the financial year, as we expand our footprint and capacities across new geographies. Our continued improvement on cost brings visibility of achieving the targeted cost reduction of Rs. 530 PMT by FY’28. With Penna transaction expected to be closed by Q2 FY’25, our capacity will go to 89 MTPA and well on track to achieve our 140 MTPA plan by FY’28.”

Operational Highlights

Particulars (YoY) Q1 FY’25	Particulars (YoY) Q1 FY’25
Sales Volume (Clinker & Cement) Growth of 3% at 15.8 Mn T
Kiln Fuel Cost Reduced by 17% (Rs. 2.08 to Rs. 1.73/’000 kCal)
WHRS as a % of total power Consumption	Increased by 3.6 pp to 15.1%

• Group synergies continue to facilitate cost reduction journey, complemented by increasing footprint and capacities.

• Green power share at 18.4%, will improve to ~31 % by FY’25 and 60% by FY’28, this will contribute to reduction in overall cost of power by 33% , giving booster to EBITDA.

==> picture [43 x 23] intentionally omitted <==

==> picture [50 x 36] intentionally omitted <==

• Higher linkage coal volume and improved coal volume from Gare Palma (captive coal mine), has contributed to 17% reduction in Kiln fuel cost (Consolidated) from Rs. 2.08 to 1.73 per ’000 Kcal.

• Integration of recently acquired Tuticorin GU and Penna Cement (under closing) will help to further improve market share, overall profitability and RoCE.

Financial Highlights (Consolidated)

• Higher Volume along with improved operational parameters resulted in growth in all business parameters.

• EBITDA PMT @ Rs. 807, EBITDA Margin of 15.4%,

• Net worth increased by Rs. 8,620 Cr during quarter and stands at Rs. 59,465 Cr, company remains debt free & continues to maintain Crisil AAA (stable) / Crisil A1+ ratings .

• The Cash & Cash Equivalent stands at Rs. 18,299 Cr enables accelerated growth in future.

• For Ambuja (consolidated) business level working capital stands at 30 days reflecting agility in unblocking the funds in inventory and receivables.

Financial Performance for the quarter ended Jun 30, 2024

==> picture [418 x 249] intentionally omitted <==

----- Start of picture text -----

Consolidated Standalone
Particulars UoM Q1 Q1 Q1 Q1
FY’25 FY’24 FY’25 FY’24
Sales Volume
Mn T 15.8 15.4 9.3 9.1
(Cement and Clinker)
Revenue from
Rs. Cr 8,311 8,713 4,516 4,730
Operations
Rs. Cr 1,280 1,667 646 949
Operating EBITDA &
% 15.4% 19.1% 14.3% 20.1%
Margin
Rs. PMT 807 1,082 691 1,040
Other Income Rs. Cr 355 263 420 189
Profit Before Tax Rs. Cr 1,103 1,512 768 867
Profit After Tax Rs. Cr 790 1,135 571 645
EPS – Diluted Rs. 2.65 4.31 2.34 3.07
----- End of picture text -----

Progress on Ongoing Projects

Brownfield expansions at 14 sites for Clinker facility of 11 MnT and Cement capacity of 23.4 MnT is progressing well as per plan. Out of this 4 MTPA clinker line 3 at Bhatapara (Chhattisgarh) is expected by Q4 FY’25 and 6.4 MTPA grinding facility (Sankrail 2.4, Farakka 2.4 and Sindri 1.6 MTPA) is expected between Q3 & Q4 FY’25. In addition, preoperative work for the 28 MTPA grinding facility and 22 MTPA Clinker facility is under progress.

==> picture [43 x 23] intentionally omitted <==

==> picture [50 x 36] intentionally omitted <==

ESG Updates

The Company has launched Digital BRSR (Business Responsibility and Sustainability Reporting) for financial year 2023-24 which is available on Company’s website “https://www.ambujacement.com/ambuja4-BRSR/ ”. The digital report enables quick overview and ease of information on Company’s ESG Performance in an interactive and interesting manner.

• With Green power projects on track, power cost will be optimised with 60% sourced from green power, EBITDA maximisation & reduction in CO2 footprint.

• Green cement @ >80% of product mix, exemplifying commitment to eco-friendly practices & CO2 footprint minimisation

• Ambuja and ACC created societal values for >4.6 million people by contributing to fields like healthcare, education, employment, and sustainable livelihoods.

• Achieved 11x water positivity (FY’24) for Ambuja Cement, establishing leadership in water governance.

• Reached an impressive 8x plastic negativity (FY’24) for Ambuja Cement through co-processing of plastic waste in cement kiln.

• Pledged to plant 8.3 million trees by 2030, (1.4 million trees planted till FY’24) in line with Adani Group's ambitious plan to plant 100 million trees.

• Ambuja and ACC put together used more than 21 million tonnes of waste derived resources in FY’24 embracing circular economy.

Branding

• Strategic placements of 'Mazbooti ki Misaal' advertisements aired during IPL 2024 and World Cup T20 reaching out to 250M+ audiences.

• Amplified digital presence on 15+ high traffic apps and websites to increase brand reach and awareness.

• Conducted 'Skill Building Workshops' across various domains for ~3700 contractors.

Outlook

Cement demand during FY’24 stood higher by 7 - 8% YoY at 422 MTPA and are likely to grow by 7 - 9 % in FY'25 to around 451 MTPA driven by strong correlation with GDP growth and rising demand from housing and infrastructure sectors. The Government aims to invest ~USD 3 trillion in infrastructure and housing development through the ongoing 'Housing for All' scheme, National Infrastructure plan, PM Gati Shakti National Master plan and others. An outlay of Rs. 11.11 lakh crores for Capital Expenditure has been allotted in Budget FY’25 which represents 3.4% of GDP. Phase IV of PMGSY will be launched to provide all-weather connectivity to 25,000 rural habitations. All these measures expected to bring buoyancy to cement demand.

Achievements

• 'Best Customer Service' Award for the revolutionary AAA Certified Technology initiative at the 17th Customer Fest Show India 2024.

• Leadership Score in CDP Climate Assessment, showcasing leading position in environmental stewardship.

==> picture [43 x 23] intentionally omitted <==

==> picture [50 x 36] intentionally omitted <==

• Bhatapara and Roorkee plants won Apex India Green Leaf Platinum and Gold Awards for Environmental Excellence, respectively.

• Gold and Silver Awards for water positivity and waste co-processing, respectively, at the SKOCH Awards 2024.

About Ambuja Cements Limited

Ambuja Cements Limited, is one of India's leading cement companies and a member of the diversified Adani Group – the largest and fastest growing portfolio of diversified sustainable businesses. Ambuja, with its subsidiaries ACC Ltd., Sanghi Industries Ltd and Penna Cement Ind. Ltd. has taken the Adani Group’s cement capacity to 89 MTPA with 22 integrated cement manufacturing plants and 21 cement grinding units across the country. Ambuja has been recognised among ‘India’s Most Trusted Cement Brand’ by TRA Research in its Brand Trust Report, 2024 and among ‘Iconic Brands of India’ by The Economic Times. Ambuja has provided hassle-free, home-building solutions with its unique sustainable development projects and environment-friendly practices since it started operations. The company has many firsts to its credit – ten bulk cement terminals and eleven captive ships that has facilitated timely, costeffective and cleaner shipments of bulk cement to its customers. To further add value to customers, the Company’s innovative products like Ambuja Plus, Ambuja Compocem and Ambuja Kawach are now enlisted in GRIHA product catalogue. These products not only fulfil important customer needs but also help in significantly reducing their carbon footprints. Being a frontrunner in sustainable business practices, Ambuja Cements ranks among ‘India's Top 50 companies contributing to inclusive growth’ by SKOCH and ‘India's Top 50 Most Sustainable Companies’ Cross-Industry by BW Businessworld.

==> picture [408 x 90] intentionally omitted <==

----- Start of picture text -----

For media queries, please contact: For investor relations, please contact:
Roy Paul Deepak Balwani
Adani Portfolio Ambuja Cements Limited
Tel: +91 79 2555 6628 Tel: 91-79 68253847
roy.paul@adani.com deepak.balwani@adani.com
----- End of picture text -----

Earnings call details

==> picture [441 x 52] intentionally omitted <==

----- Start of picture text -----

Date & Time Wednesday, July 31, 2024; 14:00 IST
Speakers Mr, Ajay Kapur, CEO
Mr. Vinod Bahety, CFO
Mr. Deepak Balwani, IR Head
Dial in Details https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=
----- End of picture text -----

4105359&linkSecurityString=19e90a91cd OR Universal Dial Ins +91 22 6280 1548 +91 22 7115 8376 International Toll Free Hong Kong 800964448 United Kingdom 08081011573 Singapore 8001012045 United States 18667462133

Ambuja Cements Limited

Registered office: Adani Corporate House, Shantigram, Near Vaishno Devi Circle, S.G. Highway, Ahmedabad – 382421. Ph +917926565555

www.ambujacement.com; CIN: L26942GJ1981PLC004717