Ambuja Cement Q3 PAT seen up 15% at Rs 175.2 cr

32290 Investors following Ambuja Cements. Share this News with them.

0

Like this story, share it with millions of investors on M3

Ambuja Cement Q3 PAT seen up 15% at Rs 175.2 cr

Country's second largest cement company by market cap - Ambuja Cements is likely to report a profit after tax of Rs 175.2 crore in the third quarter of CY11, a growth of 15% as compared to Rs 152.1 crore in the corresponding quarter of last fiscal.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ News and Notices about Ambuja Cements See interviews with Ambuja Cements Management See what other Experts & Brokerages are saying about Ambuja Cements See previous Results of Ambuja Cements

Country's second largest cement company by market cap - Ambuja Cements is likely to report a profit after tax of Rs 175.2 crore in the third quarter of CY11, a growth of 15% as compared to Rs 152.1 crore in the corresponding quarter of last fiscal.

Net sales are expected to go up 16% to Rs 1,810 crore versus Rs 1,564 crore year-on-year.

EBITDA is seen going up just 2% to Rs 290 crore in the July-September quarter of 2011 as against Rs 283.2 crore in same quarter the previous year.

EBITDA margin is expected to be at 16% versus 18.1% during the same period.

On quarter-on-quarter basis, net sales of the company are likely to fall 17%. PAT and EBITDA are seen going down by 50% each.
 
Factors to watch:

Top-line will be lead by higher volumes:

Dispatches growth of 8% YoY driven by gradual capacity ramp up which will take Ambuja's installed capacity to roughly 27mtpa by Dec-2011

Higher YoY prices to aid realizations but absence in South India will hurt Ambuja's topline:

On a pan-India basis, cement prices fell around 7% QoQ primarily on account of weakness in monsoons

Ambuja has high volume exposure to north & east India which are regions with steep QoQ price drops

Partly offset owing to their exposure to West India where prices have been 2nd best in terms of price resilience after South India

Margins under pressure and should contract 200 bps on a YoY basis:

Likely to face freight hike with diesel prices up in end of June 2011

Energy prices will further dent margins:
*30% increase in prices of coal linkages - meets 40% of their requirement
*Average International coal prices are higher by 33% yoy - meets 20% of their requirement

Remaining 40% coal is sourced domestically 

PAT boosted by other income and almost an entirely debt free company:

Ambuja has healthy cash and cash equivalents of approx Rs.2300cr and other income will boost the PAT on a YoY basis

Other highlights during the Quarter:
-Acquired 60% share from the promoters of Dirk India Pvt. Ltd. for Rs 16.5 crore
-Dirk India is a processed fly ash manufacturer and marketer with a capacity of 2,500TPD
-During FY2011, Dirk generated revenue of `55cr and earned EBITDA of Rs 6.8 crore