Quarterly Results: Ambuja Cements Ltd

Technical View: 

Ambuja Cements Ltd ended at Rs. 242.5, up by 1.9 points or 0.79% from its previous closing of Rs. 240.6 on the BSE.

The scrip opened at Rs. 240 and touched a high and low of Rs. 244.9 and Rs. 235.55 respectively. A total of 8947684 (NSE+BSE) shares were traded on the counter. The stock traded above its 50 DMA.

Standalone Results Q3CY16: (Rs. in crore)


***EBITDA margin change is bps

Ambuja Cement’s Q3CY16 standalone numbers have come in mixed versus the street's estimates. Revenue has come in 3.3% lower than the estimated Rs 2,100 cr. EBITDA is 19.2% below the estimated figure of 375 cr. However, the company has reported a net profit that was higher by 25.9% from the consensus estimate of Rs 220 cr.

Standalone net revenue for the quarter has fallen 3.8% yoy to Rs 2,031 cr due to a 6.6% yoy decline in sales volume due to heavy monsoon partly offset by improvement in realisations.

Reported EBITDA has fallen by 2.3% yoy to Rs 303 cr while EBITDA margins have improved by 24 bps yoy to 14.9%. This was due to 17% yoy increase in operating expenses.

However, net profit has come in at Rs 277 cr showing a yoy growth of 80.4%. This was due to a 201% yoy increase in other income due to a Rs 103 cr dividend income from ACC Limited.

Management maintains a favourable outlook on post-monsoon demand and is going to continue to focus on operational efficiencies.