Views on Ambuja Cement 3QCY2015 Results: Angel Broking

Views of Mr. Shrenik Gujrathi (Sr. Research Analyst - Cement, Angel Broking) on Ambuja Cement 3QCY2015 Results:

Ambuja Cement 3QCY2015 numbers were in line with our expectation on operating front; however lower other income led to sharp fall in profitability. EBIDTA at INR 310cr declined 21% YoY, mainly due to subdued cement demand and higher other expenses (led by INR 40cr provision towards contribution for DMF) but were in line with our estimate of INR 318cr. EBIDTA margin at 14.7% declined 317bp YoY, but were in line with our estimate of 14.7%. Net sales declined by 4.2% YoY to INR 2095.2cr due to flat cement demand and weak realization. Realization came in at INR 4347 per tonne a decline of 4.2% YoY, but in line with our estimate of INR 4345 per tonne. Sales volume was flat YoY to 4.82mt but below our estimate of 4.95mt. Net profit at INR 153.6cr, were below our estimate of INR 220.2cr. We maintain our ACCUMULATE rating on the stock.

Shares of AMBUJA CEMENTS LTD. was last trading in BSE at Rs.208.75 as compared to the previous close of Rs. 205.55. The total number of shares traded during the day was 225119 in over 2113 trades.

The stock hit an intraday high of Rs. 209.7 and intraday low of 202.7. The net turnover during the day was Rs. 46574846.

Source : Equity Bulls

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