Share Review - Ambuja Cements

During 3QCY2011, Ambuja Cements’ net sales increased by 15.4% yoy to
Rs. 1,805 cr on account of higher realization and growth in dispatches. The
company’s blended realization improved by 7.0% yoy to Rs.3,849/tonne but fell by
5.8% sequentially, in-line with correction seen in the industry.

The Ambuja Cements cement dispatches for the quarter increased by 7.6% yoy to 4.69 mn tonnes. The
company faced margin pressure during the quarter on account of higher raw material
costs, power and fuel costs and freight costs.

OPM for the September quarter stood at 17.4% and declined by 1.67% on a yoy basis on account of higher operating
costs, which overshadowed the increase in realization. But on a sequential basis,
margin declined substantially by 9.92% due lower realization and higher input
costs. On the bottom-line front, the company’s net profit stood at Rs.171 cr, up
12.7% on a yoy basis.

We remain Neutral on the stock.

Review by Angel Broking
Share:

No comments:

Post a Comment

Popular Posts

Blog Archive

Recent Posts

Featured Post

Baanhem Ventures Raises Fresh Funding of Rs 33 Million from Mudhal Partners founded by Mr. Kumar Vembu

Baanhem Ventures Raises Fresh Funding of INR 33 Million from Mudhal Partners founded by Mr. Kumar Vembu   ·         Company stays ...