Ambuja Cements Q4 Results: Margin Expands, Profit Beats Estimates

“During the quarter, the cement sector saw higher production and capacity utilisation on account of pick up in demand... Ebitda margins expanded due to relentless focus on reduction in fuel and logistics costs by leveraging synergies with group companies," Ajay Kapur, chief executive officer of Ambuja Cements, said in a statement, referring to the Adani-owned ACC Ltd.

"Business initiatives are expected to further bring down operating cost, reduce clinker factor, reduce logistics cost, improve sales of blended cement and expand Ebitda margin. We expect cement demand to further grow in coming quarters, on the back of increased infrastructure activities given the sharp focus on infrastructure capex in this budget," he said.

The company remains debt-free with a "healthy position" of cash and cash equivalents, Kapur said.

In terms of future capex, the Ametha Integrated Unit is set to be commissioned by July 2023, which will increase kiln capacity by 3.3 MTPA, he said.

Shares of the company ended 2.1% higher on Tuesday, compared to a 0.37% drop in the benchmark Sensex.

Of the 46 analysts tracking the company, 19 maintain 'buy', 14 suggest 'hold' and 13 recommend 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 32.7%.