Moneycontrol
Last Updated : Feb 20, 2018 04:51 PM IST | Source: Moneycontrol.com

Ambuja Cements Q4 beats estimates, profit jumps 89% to Rs 338 cr

Cement sales volume showed a 17.4 percent growth at 5.87 million tonnes for quarter ended December 2017, increased from 5 million tonnes in year-ago.

 
 
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Ambuja Cements' December quarter earnings (Q4CY17) beat analyst expectations on Tuesday as standalone net profit growth of 88.8 percent year-on-year at Rs 338 crore was far ahead of CNBC-TV18 poll estimates of Rs 251 crore.

Profit in year-ago quarter stood at Rs 179 crore.

The cement maker said standalone revenue from operations increased 21.9 percent to Rs 2,712.6 crore in Q4, compared to Rs 2,224.5 crore in same quarter last year.

Cement sales volume showed a 17.4 percent growth at 5.87 million tonnes for quarter ended December 2017, increased from 5 million tonnes in year-ago.

EBITDA (earnings before interest, tax, depreciation and amortisation) growth of 61.5 percent year-on-year at Rs 540.6 crore and margin expansion of 480 basis points at 19.9 percent in Q4 were also far ahead of CNBC-TV18 poll estimates of Rs 394 crore and 15.2 percent, respectively.

"A higher than estimated sales volume and cost control measures with increased contribution of premium products resulted in healthy and better performance," Binod Kumar Modi, Senior Research Analyst Reliance Securities said while maintaining positive stance on the company.

Looking forward, he expects Ambuja to get decent traction on the back of strong brand equity, premium product portfolio and value-based pricing coupled with expected pick-up in demand.

The company follows January-December as its financial year.

Tax expenses during the quarter increased to Rs 85.9 crore from Rs 26.2 crore in same quarter last year.

Ambuja Cements said the board of directors has recommended a final dividend of Rs 2 per share.

At 15:10 hours IST, the stock price was quoting at Rs 263.10, up Rs 5.35, or 2.08 percent on the BSE.
First Published on Feb 20, 2018 03:28 pm
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