CRISIL reaffirms ratings of Ambuja Cements Limited

CRISIL Ratings has reaffirmed its 'CRISIL AAA/Stable/CRISIL A1+' ratings on the bank facilities and short-term debt programme of Ambuja Cements Limited (Ambuja Cements).

The ratings continue to reflect the company's healthy market position in north and west India, robust operating efficiency and strong financial risk profile because of healthy cash flows. These strengths are partially offset by susceptibility to the commoditised and cyclical nature of the cement industry. Any substantial debt-funded capex or acquisition, which may weaken the financial risk profile, will be a key rating sensitivity factor.

For the three months ending March 2021, the standalone sales volume increased around 26% (year-on-year) driven by healthy demand and low base, which was impacted because of the lockdown in the last two weeks of March 2020. During first quarter of 2021 (January to March), EBITDA margin improved to 27.3% from 21.9% in the corresponding quarter of previous year driven by strong growth in volumes and efficiency gains.

Shares of AMBUJA CEMENTS LTD. was last trading in BSE at Rs.333.45 as compared to the previous close of Rs. 330.95. The total number of shares traded during the day was 130083 in over 1929 trades.

The stock hit an intraday high of Rs. 336 and intraday low of 331.6. The net turnover during the day was Rs. 43391544.

Source : Equity Bulls

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