Ambuja Cements Ltd. share price target

Ambuja's results were above our estimates. Revenues increased 5.5% YoY (up 5.4% QoQ) to | 3,016.9 crore (above I-direct estimate of | 2,953.6 crore) led by 5.3% YoY increase in volumes to 6.4 MT (vs. I-direct estimate of 6.4 MT) and 0.2% YoY increase in realisation to | 4,736 (vs. I-direct estimate of | 4,625) EBITDA margin declined 213 bps YoY to 20.6% mainly led by 15.9% YoY increase in power cost and 19.1% YoY increase in freight cost. However, margins remained above our estimates. EBITDA per tonne...

Ambuja Cements (ACL) has reported a better-than-estimated operating performance in 2QCY18 mainly led by higher contribution from premium products and significant decline in other expenditure. Operating profit stood at Rs5.3bn (-13% YoY and +31% QoQ) vs. our estimate of Rs4.4bn. Average realisation stood at Rs4,566/tonne (-1.8% YoY and +2.9% QoQ). Sequential improvement in realisation is attributable to exposure to Western markets. Sales volume grew by 6% YoY and 3% QoQ to 6.41mnT on account of better demand scenario across markets. Led by cost optimisation initiatives, operating cost/tonne declined by 1.3% QoQ to Rs3,736. EBITDA/ tonne came in at Rs831 vis--vis Rs1,010 and Rs655 in 2QCY18 and 1QCY18, respectively. EBITDA...

Absence of capacity expansion to cap volume growth Ambuja Cements (Ambuja), a part of the global conglomerate LafargeHolcim, is engaged in manufacturing and marketing of cement and clinker. The company has a...

Revenue increased by 4.64% to Rs. 6459.56 Cr in Q1CY18 when compared to the previous quarter. Ambuja Cements Ltd -results Comment

ICICI Securities Ltd | Retail Equity Research Ambuja's results were below our estimates. Revenues increased 11.9% YoY (up 5.4% QoQ) to | 2,862.6 crore (vs. I-direct estimate of | 2,922.4 crore) led by 3.3% YoY increase in volumes to 6.2 MT (vs. Idirect estimate of 6.3 MT) and 8.3% YoY increase in realisation to | 4,602 (vs. I-direct estimate of | 4,633) EBITDA margin increased 232 bps YoY to 17.7%. EBITDA per tonne increased 24.5% YoY to | 815/t mainly led by inventory adjustment and lower employee cost. However, EBITDA/t remained below our...

Reported operating performance of Ambuja Cements (ACL) has slipped our estimate albeit marginally 1QCY18 led by higher-than-expected operational cost. EBITDA stood at Rs4.1bn (+12% YoY and -7% QoQ) vs. our estimate of Rs4.3bn. Operating cost/tonne surged by 5% YoY and 2% QoQ to Rs3,783 mainly led by spike in input cost (due to higher fly-ash and gypsum prices), higher freight cost (led by increase in lead distance, FOR sales and diesel prices) and power & fuel cost (owing to higher petcoke prices). EBITDA/tonne stood at Rs655 vs. Rs606 and Rs750 in 1QCY17 and 4QCY17, respectively. EBITDA margin rose by 34bps YoY (-210bps QoQ) to 14.7%. Notably, average cement realisation came in marginally above our estimates...

Volumes grew only 3% YoY to 6.22mt (est. of 6.32mt) due to capacity constraints and the impact from unavailability of rakes in the east. Realizations stood at INR4,602/t (+9% YoY, +1% QoQ), exceeding our estimate of INR4,525/t, led by higher pricing in east, partly offset by weak prices in north. The QoQ improvement in realizations was driven by higher other operating income (+INR300m QoQ, led by higher incentives). Thus, net sales came in line at INR28.6b (+13% YoY).

Ambuja Cements' (ACEM) result was below our estimates with EBITDA at Rs4.1bn against estimated Rs4.7bn and OPM at 14.7% against estimated 16.1% led by lower-thanestimated volume growth. EBITDA/tn was at Rs655 against our estimate of Rs718. Sales volume was up 1.8% yoy at 6.2mt. Capacity utilization was at 85% against 81% in Q1CY17. Realization was up 7.3% yoy to Rs4,442/tn (vs. estimated Rs4,450/tn)....

Ambuja Cement (Ambuja)'s 1QCY18 EBITDA beat our expectations primarily on lower costs. Revenues rose 12% YoY primarily on realisation improvement of 8%. On a sequential basis, realisations remained flat. Volume growth for the quarter remained muted (+3% YoY) but EBITDA grew 29% YoY and exceeded expectations primarily on lower expenses. EBITDA/t was reported at INR 806/t (vs. INR 647/t in 1QCY17), as realisation growth and lower raw material costs more than offset freight and power/fuel cost escalations. We believe Ambuja's long-term growth is constrained by its clinker capacity and limited expansion plans (phase 1 expansion of 1.7MTPA of clinker at Marwar Mundwa expected by 2HCY20). As a result, we...

ICICI Securities Ltd | Retail Equity Research Ambuja reported a good set of Q4CY17 numbers. Revenues increased 21.9% YoY (up 16.9% QoQ) to | 2,712.6 crore (above Idirect estimate of | 2,564.9 crore) led by 17.4% YoY increase in volumes to 5.9 MT (vs. I-direct estimate of 5.5 MT) and 3.8% YoY increase in realisation to | 4,620 (vs. I-direct estimate of | 4,639) EBITDA margin increased 488 bps YoY to 19.9% (vs I-direct estimate of 15.1%). EBITDA per tonne increased 37.5% YoY to | 921/tonne (vs. I-direct estimate of | 700/tonne) mainly led by lower RM cost per...