Ambuja Cement Q3 Results Review- Ebitda Miss On Plant Shutdown; New Capacity To Drive Growth: Axis Securities

Axis Securities Report

Ambuja Cements Ltd.'s reported volume/revenue growth of 6%/8% YoY (above expectations) and Ebitda/profit after tax growth of 36%/39% (below expectation). The company reported a profit of Rs 514 crore up 39% YoY owing to better operating performance.

Operational excellence initiatives are aiding in the reduction of operating costs, logistics costs, and expansion of Ebitda margins YoY. The company recorded an Ebitda margin of 19.2% (expectation of 21.9%) against 15.2% YoY.

The quarter’s volume stood at 8.2 million tonnes per annum, up 6%/8% YoY/QoQ. Ambuja Cements Ebitda/tonne stood at Rs 1,038 higher by 28% YoY and it reported blended realisation/tonne of Rs 5,414 against Rs 5,362 YoY, up 1%/4% YoY/QoQ.

The company’s cost/tonne declined by 4% YoY to Rs 4,376 on account of lower power/fuel and other expenses while it was higher by 4% QoQ owing to higher purchase of stock in trade, plant shutdown during the quarter.

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