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UltraTech generated more operating profit per tonne than Ambuja Cements in FY2024–25, mainly because its larger sales base, higher mature-plant utilisation, logistics network and energy-cost initiatives spread fixed costs across more cement. UltraTech’s reported FY25 PBIDT divided by 135.83 million tonnes equals about ₹979 per tonne, while Ambuja reported operating EBITDA of ₹915 per tonne on 65.2 million tonnes. In the fourth quarter, the disclosed figures were ₹1,270 per tonne for UltraTech (excluding acquired assets) and ₹1,001 for Ambuja. Those numbers show a meaningful gap, but they are not a perfectly harmonised accounting comparison: the companies use different EBITDA definitions, volume scopes and acquisition exclusions.
What exactly is being compared?
“Profit per tonne” in these disclosures means an operating measure, not consolidated net profit available to shareholders. The most useful calculation is operating EBITDA (or UltraTech’s reported PBIDT) divided by comparable cement sales volume. It excludes financing, tax and other below-operating items, so it should not be read as net income per tonne.
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| Measure | UltraTech FY2024–25 | Ambuja FY2024–25 |
|---|---|---|
| Reported sales or revenue | ₹74,936 crore net sales | ₹35,045 crore revenue from operations |
| Operating measure | ₹13,302 crore PBIDT | ₹5,971 crore operating EBITDA |
| Volume denominator | 135.83 million tonnes | 65.2 million tonnes of cement and clinker |
| Derived or reported operating profit per tonne | About ₹979, calculated from PBIDT ÷ volume | ₹915, reported by the company |
| Full-year utilisation | 78% | Not stated on the same basis |
UltraTech’s ₹979 figure is a simple division of two consolidated FY25 figures, while Ambuja’s ₹915 is its stated operating EBITDA per tonne. Because the scopes are not identical, the result is directional rather than an audited league table.
Why did UltraTech’s unit profit come out higher?
Scale absorbs fixed costs
UltraTech sold 135.83 million tonnes in FY25, more than twice Ambuja’s cited 65.2 million tonnes of cement-and-clinker sales. Quarrying, kilns, grinding units, maintenance, technical staff and corporate overheads contain substantial fixed or semi-fixed costs. Spreading them over a larger denominator can lower cost per tonne, provided the additional volume is produced and sold efficiently.
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Utilisation changes the arithmetic
UltraTech’s 78% utilisation for the full year rose to 89% for grey cement in Q4 FY25. A plant running closer to practical capacity generally carries less idle-cost burden per tonne. Ambuja’s acquired plants were still being stabilised; clinker utilisation at Penna reached about 80%, illustrating how ramp-up can temporarily leave unit costs above the level of an established operation.
Fuel, power and the energy mix
UltraTech disclosed Q4 fuel cost of ₹864 per tonne and power cost of ₹354 per tonne, with green power supplying 35.7% of consumption. Ambuja reported a 14% reduction in kiln-fuel cost during FY25 and a 21.4% green-power share. These are not directly interchangeable statistics: fuel baskets, contracts, renewable accounting and the timing of savings differ. Nevertheless, lower thermal and electrical costs flow directly into EBITDA when selling prices hold.
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UltraTech’s Q4 logistics cost was ₹1,167 per tonne, with a 384-kilometre primary lead. Ambuja reduced Q4 logistics cost to ₹1,238 per tonne and cut overall lead distance by 16 kilometres, while increasing direct dispatch and marine movement. Cement is bulky and low-value relative to its weight, so the distance from quarry and plant to depot or customer, plus the mix of rail, road, coastal and bulk dispatch, can move margins by several dozen rupees per tonne.
Realisation and premium products
Revenue per tonne matters as much as cost per tonne. UltraTech reported Q4 domestic grey-cement realisation of ₹5,052 per tonne. Ambuja said branding and technical support improved margins and reported premium products at 29% of Q4 trade sales. A premium mix can raise realisation without a matching increase in manufacturing cost, although regional pricing, channel discounts and product composition must be aligned before comparing companies.
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What happened in Q4 FY25?
| Q4 FY25 metric | UltraTech | Ambuja |
|---|---|---|
| Sales volume | 41.02 million tonnes | 18.7 million tonnes |
| Operating EBITDA per tonne | ₹1,270, excluding acquired assets | ₹1,001 |
| Operating EBITDA | Not stated in the cited Q4 comparison on the same scope | ₹1,868 crore |
| Operating EBITDA margin | Not stated on the same basis | 18.9% |
| Grey-cement utilisation | 89% | Not stated on the same basis |
| Logistics cost per tonne | ₹1,167 | ₹1,238 |
The Q4 spread is larger than the simple full-year calculation, but UltraTech’s figure explicitly excludes acquired assets. That exclusion can remove newer, lower-utilisation operations and therefore must remain attached to the number.
How did acquisitions and expansion affect the comparison?
UltraTech added 42.60 million tonnes per annum of capacity in FY25 and included India Cements’ volume from its acquisition date. Ambuja crossed 100 MTPA of group capacity after expansions and acquisitions, including Orient Cement. New kilns and acquired plants can increase depreciation, integration, commissioning and start-up costs before they reach mature utilisation. They may depress near-term EBITDA per tonne while improving the long-term cost position once volumes ramp.
Ambuja’s integrated FY25 report gives another scope that should not be mixed with its operating-EBITDA disclosure: consolidated EBITDA of ₹8,625 crore, a 23% EBITDA margin, 63 million tonnes of cement sales and 61.6 million tonnes of cement production. The ₹5,971 crore operating EBITDA and ₹915 per tonne figures belong to a different reported operating presentation.
Ambuja’s Whole-Time Director and CEO Vinod Bahety described the expansion milestone this way: “This year marks a historic milestone in the journey of Ambuja Cements as we cross the 100 MTPA capacity.” Capacity growth can narrow the gap over time, but only if the new assets achieve strong utilisation, favourable freight routes and competitive energy costs.
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Is Ambuja catching up on margins?
Ambuja’s Q4 operating EBITDA margin of 18.9% and ₹1,001 per tonne indicate improving operating performance, while its fuel savings, shorter leads and premium-product mix support further gains. However, the available figures do not establish that Ambuja has closed the structural gap with UltraTech. The answer depends on whether the next comparison uses the same period, geography, product definition, acquisition treatment and accounting measure.
How should investors compare cement profit per tonne?
Use a like-for-like worksheet rather than ranking headline numbers:
- Match the period. Compare the same quarter or financial year, and note whether a figure is recurring or affected by a one-time event.
- Match the geography. Separate India operations from overseas or other consolidated businesses.
- Match the product scope. Do not compare cement-only volume with cement-and-clinker volume without identifying the difference.
- Match the operating measure. Keep operating EBITDA, PBIDT, EBITDA margin and net profit per tonne in separate columns.
- Show the denominator. State whether volume is cement sold, cement plus clinker sold, or production.
- Flag acquisitions. Identify acquired-asset exclusions, acquisition-date consolidation and plants still ramping.
- Break down the drivers. Track realisation, fuel, power, logistics, utilisation and premium-product share together.
The transparent formula is operating EBITDA per tonne = comparable-period operating EBITDA ÷ comparable cement sales volume. Derived figures should be labelled as calculations, not presented as company-reported metrics.
What should change the gap in the next results?
- Whether UltraTech sustains high utilisation after integrating recently added capacity.
- Whether Ambuja’s expanded network reaches mature throughput and lowers start-up costs.
- Fuel prices, waste-derived fuel use and renewable-power additions.
- Rail, road and marine freight mix, plus changes in average lead distance.
- Regional cement prices, trade discounts and premium-product penetration.
- Any change in the companies’ EBITDA definitions or the assets included in reported volumes.
Frequently Asked Questions
Does a higher EBITDA per tonne mean UltraTech has higher net profit per tonne?
No. EBITDA and PBIDT are operating measures before interest, tax, depreciation and some other items. Depreciation from new plants, financing costs, tax rates and exceptional items can produce a different ranking on a net-profit basis.
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Why can cement production per tonne differ from cement sales per tonne?
Plants may produce clinker that is stocked, transferred internally or sold later, while grinding units can use purchased clinker. Working-capital movements and inventory therefore make production and sales denominators unsuitable substitutes.
Can lower freight cost alone eliminate the gap between the companies?
Usually not. Freight is one major cost line alongside fuel, electricity, maintenance, labour and fixed-cost absorption. A company can have a logistics advantage but still trail if its utilisation, realisation or energy mix is weaker.
When should these figures be refreshed?
Refresh the comparison after each quarterly release, especially when a major acquisition or capacity expansion begins consolidation. The next update should preserve the same scope notes rather than replacing a comparable series with a more convenient headline number.
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