Ambuja Cements Q1 Review - Lower Costs Drive Sharp Ebitda Beat: Nirmal Bang

Ambuja Cements Q1 Review - Lower Costs Drive Sharp Ebitda Beat: Nirmal Bang

A worker holds up processed cement at a factory. (Photographer: Dario Pignatelli/Bloomberg)

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Ambuja Cements Ltd. reported extremely good set of results for Q1 CY22, with Ebitda of Rs 7.9 billion, 22% ahead of our estimate, largely driven by lower-than-expected costs.

The company reported ~Rs 200/million tonne decline in power and fuel costs compared to our expectation of an increase. We believe that -

  1. higher usage of domestic/captive coal,

  2. increased petcoke usage and

  3. lower clinker factor would have helped the company to achieve lower-than expected fuel costs.

Overall, operating costs declined by Rs 238/million tonne, driven by lower other expenses and power and fuel costs.

‘I Can’ initiatives of Ambuja Cements, coupled with the master supply agreement with ACC Ltd. benefits also helped contain overall costs.

As a result, Ebitda/million tonne came in at Rs 1,055 against our expectation of Rs 879.

Click on the attachment to read the full report:

Nirmal Bang Ambuja Cements-Q1CY22 Result Update -29 April 2022.pdf
Read Document

DISCLAIMER

This report is authored by an external party. BloombergQuint 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 BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

lock-gif
To continue reading this story
Subscribe to unlock & enjoy all Members-only benefits
Still Not convinced ?  Know More
Get live Stock market updates, Business news, Today’s latest news, Trending stories, and Videos on NDTV Profit.
GET REGULAR UPDATES