Motilal Oswal - Ambuja Cements Limited (AMBUJACEM) MOSL: AMBUJA CEMENTS (Neutral)-Earnings miss as costs rise-cut estimates by 6-14%

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Motilal Oswal

EUR 120.00 For Business Accounts Only

MOSL: AMBUJA CEMENTS (Neutral)-Earnings miss as costs rise-cut estimates by 6-14%

AMBUJA CEMENTS: Earnings miss as costs rise; cut estimates by 6-14%

(ACEM IN, Mkt Cap USD5.8b, CMP INR208, TP INR220, 6% Upside, Neutral)

Volumes decline but realizations improve: Volumes declined 5% YoY to 5.23mt in 3QCY19, as demand was impacted by heavy rain and floods in various states. Realizations increased 6% YoY, but were down 2% QoQ to INR4,887/t due to price roll back post May'19 in core markets. Revenues grew 1% YoY to INR26.3b, vs our estimate of INR25.3b.
EBITDA/t impacted by higher costs: Cost/t increased 2% YoY to INR4,180 (our estimate: INR3,963) due to higher other expenses/t and power & fuel cost/t. EBITDA/t came in at INR841 (+29% YoY). EBITDA grew 23% YoY to INR4.4b (our estimate: INR5.0b), translating into a margin of 16.7% (+3pp YoY, -6.7pp QoQ). PAT stood at INR2.3b (+31% YoY; our estimate: INR2.8b).
Key highlights from management presentation: (1) The board approved the amalgamation of Dirk India Pvt Ltd, a wholly owned subsidiary, with effect from 1st Jan'20, subject to regulatory approvals. (2) Premium product sales increased 17% YoY.

22/10/2019 10 EN

Underlying

Ambuja Cements Limited

Ambuja Cement is a holding company. Co. is engaged in the manufacture and bulk export of cement and clinker products. Through its subsidiaries, Co. is engaged in investment holding in cement industries; finance services; the manufacture of cement; and property development and construction projects.

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INE079A01024 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: AMBUJA CEMENTS (Neutral)-Earnings miss as costs rise-cut estimates by 6-14%

Ambuja Cements Limited: 1 director

AMBUJA CEMENTS sees a downgrade to Slightly Negative on account of less fundamental stars

Monthly LMI Update Independent Investment Research

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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