Adani Group firm Ambuja Cements Ltd (ACL) on July 31 reported a consolidated net profit at ₹789.63 crore for the first quarter ended in June 2024.

The company had reported a net profit of ₹1,135.46 crore in the April-June period a year ago, according to a regulatory filing by ACL.

Its revenue from operations was at ₹8,311.48 crore during the June quarter compared to ₹8,712.90 crore in the corresponding period last fiscal.

According to ACL, the financial results for the current quarter, preceding quarter and FY24, also include the financial results of Sanghi, which was acquired in August last year. It also has the results of Asian Concretes and Cements Pvt Ltd (ACCPL), which was acquired by its subsidiary ACC.

“The results for the current quarter, preceding quarter and FY24, are not comparable with the quarter ended June 30, 2023, to that extent,” it said.

Total expenses in the June quarter were at ₹7,566.91 crore. The total Income of ACL, which also includes other income was at ₹8,666.20 crore in the June quarter.

The consolidated results of Ambuja Cements include the financial performance of its step-down firm ACC Ltd in which it owns around 51% stake and Sanghi Industries, a Gujarat-based company which the Adani group acquired last year.

On a standalone basis, Ambuja Cements reported a profit after tax of ₹570.65 crore in the June quarter, as against ₹644.88 crore in the year-ago quarter.

Its standalone revenue from operations was at ₹4,780.32 crore in the first quarter of FY 2024-25.

ACL’s sales volume, which also includes ACC, was at 15.8 million tonnes (MT), which was up 2.6%.

While on a standalone basis, Ambuja Cements’ own sales volume was at 9.3 MT in the June quarter, up 2.2%.

Commenting on results, Ajay Kapur, whole-time Director & CEO of ACL said, “Our continued improvement on cost brings visibility of achieving the targeted cost reduction of ₹530 per MT by FY28.” He expects over ₹10,000 crore acquisition of Hyderabad-based Penna to be closed in the September quarter of this fiscal.

Over the Outlook, ACL said cement demand during FY24 stood higher by 7- 8% at 422 MTPA and is likely to grow between 7-9% in FY25 to around 451 MTPA.

This would be “driven by strong correlation with GDP growth and rising demand from housing and infrastructure sectors,” it said.

An outlay of ₹11.11 lakh crore for infrastructure projects has been allotted in Budget FY25, 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 are expected to bring buoyancy to cement demand,” it said.

Shares of Ambuja Cements Ltd on Wednesday were trading at ₹680.10 apiece on BSE, up 0.84% from the previous close.