Ambuja Cements Ltd. share price target

9 Ambuja's operating results in Q1CY16 were inline with our estimates. However, this was again because cost savings helped Ambuja to compensate on realisation loss and deliver on operating profits. Absence of qoq savings on power & fuel was a negative...

Volume and cost structure improves to multi-quarter best Volume growth matches industry strength: ACEM's 1QCY16 revenue stood at INR24.2b (flat YoY and marginally below our estimate), as the strong volume...

Healthy volume and cost benefits aid performance Ambuja Cements (ACL) has reported a better-than-expected operating performance amid subdued realizations mainly supported by cost benefits. Operating profit came in at Rs4.23bn (-10% yoy and +39% qoq). Operating cost/tonne declined by ~7% yoy and ~6% qoq mainly aided by cost benefits in terms of higher usage of petcoke (60% v/s 40%), low packaging costs and cost optimization initiatives. EBITDA/tonne came in at Rs718 vis--vis Rs868 and Rs551 reported during 1QCY15 and 4QCY15, respectively. Sales volume improved strongly by ~9% yoy to 5.9mnT owing to pickup in construction...

Ambuja Cement's results were below our expectations. Ambuja's Q4CY15 revenues declined 1.0% YoY to | 2,355.8 crore (below Idirect estimate of | 2,402.3 crore) led by a sharp fall in realisations (down 6.0% YoY due to pricing pressure in north, west). However,...

9 Ambuja maintained flat realisations in Q4 with an intentional cut in volumes and prudentmarketmix.ItsrealisationswerebetterinnorthIndiaandmarginallylowerin othermarkets,whichisapositivesurprise....

Ambuja Cement (ACEM) reported another weak quarter, with EBITDA/t at Rs 551 (Vs est 497/t, -9.9% Yo, -8.3% QoQ). ACEM managed to hold on to realisations (Rs 4,269/t, -2.5% YoY, -0.2% QoQ), despite declining prices in most markets. However, volume growth remains elusive (5.5 mT, 1.5% YoY) with CY15 volumes declining 1.6% YoY.

Ambuja's Q4CY15 performance was in-line with estimates. Volume grew 5% YoY but lower realisation dragged EBITDA down by 9% YoY to Rs 3.0 bn. EBITDA/t stood at Rs 535/t (down 13% YoY) against our expectation of Rs 546/t.

Ambuja Cements Ltd's (ACL) 4Q reported performance was broadly in-line with estimates as EBITDA came in at Rs3.04bn (-9% yoy) v/s our estimate of Rs3.07bn. EBITDA/ tonne came in at Rs551 as against Rs614 and Rs601 seen in 4QCY14 and 3QCY15, respectively. Notably, operating cost/tonne grew by ~1.5% qoq mainly driven by increase in raw material costs (due to inventory adjustment). However, a write-back of Rs350mn pertaining to gratuity led to a sharp decline in employee cost (-17% yoy and -8% qoq). Further, power & fuel costs/tonne also declined sharply (-21% yoy and -18% qoq) led by higher petcoke usage and reduction in fuel costs. We downgrade our EBITDA estimate...

Ambuja Cements Ltd's (ACL) 4Q reported performance was broadly in-line with estimates as EBITDA came in at Rs3.04bn (-9% yoy) v/s our estimate of Rs3.07bn. EBITDA/ tonne came in at Rs551 as against Rs614 and Rs601 seen in 4QCY14 and 3QCY15, respectively. Notably, operating cost/tonne grew by ~1.5% qoq mainly driven by increase in raw material costs (due to inventory adjustment). However, a write-back of Rs350mn pertaining to gratuity led to a sharp decline in employee cost (-17% yoy and -8% qoq). Further, power & fuel costs/tonne also declined sharply (-21% yoy and -18% qoq) led by higher petcoke usage and reduction in fuel costs. We downgrade our EBITDA estimate...

8 Like all other cement majors, Ambuja has reported low volume growth of 2% yoy; its realisationgrowthwasalso2%yoy(23%lowerthanweexpected). 8 BarringadditionalprovisionofRs401mninotherexpenses(~Rs82/ton)overDMFand...