Ambuja Cements Q3 Results Review - Higher Cost Led Earnings Miss; Consolidated Volume Up 3% YoY: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Ambuja Cements ltd.'s (standalone) Ebitda came in at Rs 8.5 billion versus our estimate of Rs 9.6 billion, due to higher-than-estimated opex/tonne (plus 5% versus our estimate). Ebitda/tonne came in at Rs 1,038 (estimate Rs 1,203) and operating profit margin stood at 19% (versus estimate 22.5%).Profit after tax stood at Rs 5.1 billion (20% below our estimate). Consolidated sales volume grew 3% YoY and Ebitda/tonne increased ~65% YoY/24% QoQ to Rs 1,228.The management highlighted that ~12% of clinker capacities were under maintenance, leading to higher costs. The company’s cement capacity has increased to 77.4 million tonnes per annum and another ~32 mtpa expansion is underway at various stages. This expansion will help the company reach 110 mtpa capacity by FY27.We cut our FY24 earning per share estimates by 5%, due to earnings miss, while maintaining estimates for FY25-26. Ambuja Cements trades at 20.1 times/17.6 times FY25E/FY26E enterprise value/Ebitda (standalone). We maintain our Neutral rating on the stock..Click on the attachment to read the full report:.Paytm Faces Profitability Distress Amid Regulatory Challenge; Brokerages Express Concerns.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ambuja Cements Q3 Results Review - Higher Cost Led Earnings Miss; Consolidated Volume Up 3% YoY: Motilal Oswal

Capacity expansion up to 32 million tonnes per annum under progress.

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Ambuja Cements Q3 Results Review - Higher Cost Led Earnings Miss; Consolidated Volume Up 3% YoY: Motilal Oswal

Capacity expansion up to 32 million tonnes per annum under progress.

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