Adani-promoted Ambuja Cements share price gains post Q2 results, brokerage views mixed
Ambuja Cements Ltd reported a four-fold jump in its standalone net profit for the quarter ended September 2023. The same was helped by the good improvement in operating performance, led by lower energy costs and cost-saving measures. The reported Earnings before interest, tax, depreciation and amortization (Ebitda) during the quarter surged to ₹771.5 crore from ₹313 crore, while Ebitda margin improved by 70 basis points (bps) to 11.9% from 11.2%, YoY.
The Operating expenses per tonne declined 12% YoY, led by 8%,6% and 29% YoY decline in variable, freight costs and other expenses as per analysts calculations. Employee costs also declined 3% year-on-year. Hence while the realisations per tonne did not see much improvement however the overall operating performance improved significantly.
Ambuja Cements net profit in Q2FY24 surged to ₹643.84 crore from ₹138.9 crore, in the same quarter of the last fiscal. However the Brokerage views have remained a mixed bag for Ambuja Cement post Q2 results Also Read- 6 things that changed for the stock market overnight - Gift Nifty to US Fed policy outcome One reason for the same remained tepid volume growth. The company's sales volumes during the quarter at 7.6 million tonne (MT) though improved from 7.1 mt in the year ago quarter , they declined from 9.08 mt in the previous quarter.
Analysts at Antique Stock Broking said that volume growth disappointed owing to floods in Himachal Pradesh, heavy rains in the Central region, and weak demand in the East India. While the management has guided analysts for double digit volume growth (10-12% CAGR) over next two years, however analysts are concerned over volume growth prospects looking at some delay in the capacity expansions. Delays in
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