Ambuja Cements could not live up to analysts’ expectations. Profit rose 79.2 per cent Y-o-Y to Rs 277 crore, on the back of dividend income of Rs 103 crore from ACC. Revenue during the quarter reduced 3.8 per cent to Rs 2,031.4 crore from Rs 2,110.9 crore in the corresponding period last year, effected by lower sales volume.
Sales realization improved by 2.8 per cent but cement sales volume fell by 6.6 per cent Y-o-Y to 4.5 million tonnes because of heavy monsoon in core markets and subdued demand. During the quarter, other income rose over 3-fold to Rs 223.2 crore on yearly basis, which included dividend income.
EBITDA (earnings before interest, tax, depreciation and amortization) slipped 2.3 per cent Y-o-Y to Rs 303 crore and margin expanded only by 20 basis points to 14.9 per cent as compared to estimates of Rs 375 crore and 17.9 per cent, respectively. EBITDA per tonnne too was lower than estimates, seen at Rs 616 for the quarter against Rs 611 in the corresponding period last year and estimates of Rs 795.
Consolidation net sales, operating EBITDA and profit (which included results of ACC) for the Sept quarter stood at Rs 4,477 crore, Rs 580 crore and 216 crore, respectively. Post monsoon construction activities a likely to pick up and the medium to long term outlook for cement demand is positive owing to good monsoon this year and government's focus on housing and infrastructure development. The company will continue to focus on improving operational efficiencies.
On 3rd Nov, Ambuja Cements share price was trading at Rs. 240.10, touched the day’s high and low at Rs. 245.40 and Rs. 235.55. The stock closed below 0.21 per cent at Rs. 243.10. Around 84,80,593 shares were traded in the counter with a traded value of Rs. 20,437.38 lacs, as per NSE.
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