India's Ambuja Cements posts first-quarter profit rise on strong volumes, price recovery

Sanghi Industries

31/07/2025 10:03

July 31 (Reuters) - India's Ambuja Cements ABUJ.NS reported a higher first-quarter adjusted profit on Thursday, helped by strong volume growth and recovering cement prices.

Standalone pre-tax profit rose to 10.66 billion rupees ($121.69 million) during the April-June period, up 37% on-year. The company recorded a one-off expense of 128.9 million rupees in the year-ago quarter.

Revenues rose 22%, lifted by a near-17% volume rise. At least four brokerages expected volumes to grow in the 7%-22% range.

Shares fell 1.4% at a time when the broader market is digesting Trump's 25% tariff threat and an undisclosed penalty on Indian goods.

For further earnings highlights, click nFWN3TS1GV

KEY CONTEXT

April-June quarter is usually a weak quarter for cement makers, as the summer heat and monsoon rains hinder construction.

However, Ambuja, with its unit ACC, and larger rival UltraTech Cement ULTC.NS, have managed to protect their volumes thanks to the string of deals they have inked in the sector recently, analysts said.

Rising 2% from last year's slump, cement prices also lent support, in the quarter, according to brokerage Ambit Capital.

Last week, UltraTech Cement reported earnings above market estimates and ACC posted a 5% profit rise, aided by uptick in prices.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Ambuja Cements
ABUJ.NS
39.49
17.45
3.25
21.97
6.90
Buy
34
0.98
0.32
UltraTech Cement
ULTC.NS
36.65
20.03
3.83
14.91
43.98
Buy
37
0.91
0.63
ACC
ACC.NS
16.47
8.99
1.51
11.64
-3.34
Buy
20
0.82
0.41
Shree Cement
SHCM.NS
54.65
19.85
5.27
10.64
39.98
Hold
19
1.01
0.36

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.60 Indian rupees

ABUJ Q1 https://tmsnrt.rs/4mfhsxR

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Harikrishnan Nair)

 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))