Ambuja Cements Limited , a prominent player in the Indian cement industry, has recently received a tax demand order from the CGST Howrah Commissionerate. The order, which disallows Cenvat Credit (Input Tax Credit) and imposes penalties, has prompted the company to announce its intention to appeal.

Order Details

The CGST Howrah Commissionerate has issued an order under section 74(9) of the CGST Act, 2017, citing the disallowance of excess Input Tax Credit availed by Ambuja Cements. The details of the order are as follows:

Company's Response

Ambuja Cements has stated that it plans to file an appeal against the order before the appropriate appellate authority. The company's stance, as per its disclosure to the stock exchanges, is that it does not foresee any material impact on its financial, operational, or other activities as a result of this order.

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, Ambuja Cements has promptly disclosed this development to the stock exchanges. The disclosure adheres to the regulatory requirements for transparency in corporate communications.

Investor Considerations

While the company maintains that the impact of this order is not expected to be material, investors and market observers may want to keep an eye on the progress of the appeal process. The outcome of such regulatory matters can potentially influence investor sentiment and the company's financial statements in the future.

Ambuja Cements continues to operate its business as usual, with its registered office located at Adani Corporate House, Shantigram, near Vaishno Devi Circle, S. G. Highway, Khodiyar, Ahmedabad, Gujarat.

As the situation develops, stakeholders are advised to follow official communications from the company for any updates on this matter.

Ambuja Cements Limited , a leading player in the Indian cement industry, has reported strong financial results for the September quarter, showcasing significant revenue growth and an ambitious capacity expansion plan.

Financial Highlights

Revenue

The company's consolidated revenue increased by 22% to ₹9,175.00 crore from ₹7,552.00 crore in the same period last year, marking Ambuja Cements' highest-ever Q2 topline.

Net Profit

Consolidated net profit surged to ₹1,766.00 crore, significantly higher than ₹480.00 crore in the corresponding quarter of the previous year. This substantial increase was primarily aided by a tax write-back of ₹1,465.00 crore.

Strategic Initiatives

Capacity Expansion

Ambuja Cements has raised its FY28 capacity target by 15 MTPA to 155 MTPA from the earlier goal of 140 MTPA. This expansion is planned through debottlenecking at a cost of $48 per tonne.

Product Mix Optimization

The company plans to install 13 blenders across its plants over the next 12 months. This initiative aims to optimize the product mix and enhance the share of premium cement in its portfolio.

Cost Reduction Targets

Ambuja Cements has set ambitious cost reduction targets:

• The company aims to end FY26 with a total cost of ₹4,000.00 per tonne.
• It expects a 5% annual reduction over two years to reach ₹3,650.00 per tonne by FY28.

Management Outlook

CEO Vinod Bahety expressed optimism about the company's future performance. He stated that Ambuja Cements expects to deliver double-digit revenue growth and four-digit PMT EBITDA for the remainder of FY26.

Market Response

Following the announcement of these results, Ambuja Cements' shares traded 1.4% higher at ₹573.20.

The strong financial performance, coupled with ambitious expansion and cost reduction plans, indicates Ambuja Cements' commitment to strengthening its market position and enhancing shareholder value in the coming years.