Despite uptick in input cost, Ambuja Cements posts impressive bottom-line

Ambuja Cements’ consolidated revenue for the fourth quarter of CY17 came in at Rs. 6,021 crore, registering 25 per cent yoy increase. This was due to 17 per cent yoy growth in cement volumes led by growth in individual housing segment and increased participation in the building and infrastructure segment.

The company expects to see traction in demand for cement due to infrastructure development, housing and increase in rural spend.

EBITDA for the quarter rose by 58 per cent yoy to Rs. 986 crore with a corresponding margin expansion of 350 bps. EBITDA margin for the quarter stood at 16 per cent. This margin expansion was aided by 16 per cent yoy decline in other expenses due to various fixed cost optimisation measures.

However, during the quarter company witnessed increase in power & fuel cost which was offset by improved efficiency and cost saving measures.

The PAT for the quarter came in at Rs. 409 crore, yoy increase of 82 per cent.

Looking at its full year numbers (CY2017), Ambuja Cements registered a 9 per cent yoy cement volume growth. EBITDA for CY17 stood at Rs. 1,940 crore, 15 per cent yoy growth, while EBITDA margin was at 19 per cent. The PAT for the year came in at Rs. 1,250 crore, registering 34 per cent yoy growth.

The company has signed long term traffic contract (LTTC) with railways for three years.

Meanwhile, the stock of Ambuja Cements on Wednesday was trading flat (at 10.30 am) at Rs. 263.8 per share, up by 0.3 per cent. The stock opened at Rs. 268.8 as against previous close of Rs. 263.1 per share.