Ambuja Cements Q3 Results Review - Reclaiming Market Share With 140 Mtpa Target: Yes Securities

Yes Securities Report

Ambuja Cements Ltd. reported a healthy performance, where revenue grew by 8% YoY aided by +7% YoY volume growth and 1% YoY net sales realisation growth in Q3 FY24.

Raw material cost/tonne surged by 42% YoY due to higher clinker transfer because of maintenance shutdown during the quarter. Despite that, the total cost/tonne decline by 4% YoY aided by eased power cost/te by 34% YoY translates in Ebitda of Rs 1038/tonne (+28% YoY).

Ebitda/profit after tax grew by 36/19% YoY to Rs 8.5/5.1 billion in Q3 FY24. Under new management, Ambuja Cements targets to reach 140 mtpa by FY28E to regain the lost market share.

In this endeavor, Ambuja Cement is adding 19.6 mtpa of cement capacity with 10.25 mtpa clinker. Moreover, with the Sanghi Indsutries Ltd./ Asian Concretes and Cements Pvt. Ltd. acquisition, the console capacity to reach 110 mtpa by FY28E.

As a result, the incremental volume from newly commissioned capacities will start from FY26E onwards, while standalone volume should grow at ~10% compound annual growth rate over FY24-26E supported by master supply agreement with subsidiaries.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.