Overview
• Date of Submission: August 7, 2024
• Conference Call Date: July 31, 2024
• Key Executives:
• CEO Ajay Kapur
• CFO Vinod Bahety
• Moderator: Jashandeep Singh (Nomura)
• Focus: Unaudited financial results for Q1 FY25 and company performance insights.
Company Position
• Market Leadership: Leading cement company in India, part of Adani Group.
• Market Share: Currently 14%, targeting 20% by FY28.
• Cement Capacity: 89 million tons, aiming to increase to 140 million tons.
Financial Performance
• Q1 FY25 Revenues: Rs. 8,311 crores.
• Cost Management: 3% decline in costs per ton; significant reductions in energy and transportation costs.
• EBITDA: Rs. 1,280 crores (15.4% margin).
Growth Initiatives
• New Facilities: Targeting 100 million tons capacity by Q2 FY26.
• Sustainability Goals: Net-zero emissions by 2050; investments in green power and waste heat recovery.
• Infrastructure Enhancements: Improved transportation efficiency at Sanghi plant.
Market Demand
• Cement Demand Growth: Increased by 7-8% in FY24; projected 7-9% growth in FY25.
• Government Investment: $3 trillion in housing and infrastructure; significant capital expenditure planned.
Strategic Acquisitions
• Penna Cement Acquisition: Ongoing integration expected to yield benefits in H2 FY25.
• Market Consolidation: Top five companies hold 60% market share; structured approach to acquisitions.
Cost Management and Challenges
• Maintenance Costs: Scheduled plant shutdowns may impact EBITDA; however, no major concerns anticipated.
• Cash Position: Healthy cash reserve of Rs. 18,300 crores; projected CAPEX of Rs. 10,000 crores.
Future Outlook
• CO2 Emission Targets: Zero-net by 2050; significant investments planned for production efficiency.
• Price Recovery: Optimism for future pricing recovery post-monsoon despite recent declines.
Conclusion
• Next Steps: Continued focus on growth, sustainability, and cost management; next quarterly call scheduled before Diwali.

Submission Details
• Date of Submission: May 7, 2024
• Event: Earnings conference call for Q4 and FY24 results
• Hosted by: PhillipCapital India
• Participants: Executives from Ambuja Cements, ACC, and Sanghi Industries
• Transcript Availability: Company website and attached to the letter
Key Highlights from Ajay Kapur's Presentation
• Market Position: Strong commitment to capacity expansion aiming for 20% market share by FY28
• Achievements:
• Acquired a 1.5 million ton grinding unit in Tamil Nadu
• 17% increase in capacity
• Record sales for Ambuja Cement
• Financial Performance:
• 12% revenue increase to INR 8,894 crores in Q4 FY24
• 37% rise in EBITDA
• Future Plans:
• Doubling grinding capacity to 140 million tons by FY28
• Focus on sustainability and cost reduction initiatives
Cost Management and Sustainability Efforts
• Logistics Costs: Decreased by 8% to INR 1,280 per ton
• Limestone Supply: Secured 15 new mines with 7.8 billion tons of reserves
• Sustainability Goals:
• Net zero emissions by 2050
• 60% of power from green sources by FY28
• 8.3 million trees to be planted by 2030
Financial Performance and Future Projections
• Record PAT: INR 4,738 crores
• Net Worth: Approaching INR 60,000 crores
• Cost Reduction Target: INR 530 per ton by FY28
• Production Goals: Minimum of 5 million tons in FY25 for Sanghi
Operational Updates and Cost Reduction Strategies
• Cost Reduction Areas:
• Improvements in coal mining and raw material procurement
• Investments in green energy
• Logistics improvements contributing to 40% of cost savings
• Current Cost Reduction: From INR 5,300 to INR 4,170 per ton
Market Dynamics and Strategic Insights
• Market Share Target: 20% growth without impacting prices
• Coal Blocks: Suitable for kiln operations, with strategic planning for coal quality
• Distribution Strategy: Leveraging coastal transportation and existing infrastructure for efficiency
Conclusion
• Overall Outlook: Positive industry outlook with expected demand growth of 8-9%
• Management's Assurance: Strong positioning for sustainable market leadership through strategic expansions and operational efficiencies.