Ambuja Cement - New Capacity To Revive Growth In CY21E: ICICI Direct
Ambuja Cement Signboard on a store (Photo: BloombergQuint)

Ambuja Cement - New Capacity To Revive Growth In CY21E: ICICI Direct

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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.

ICICI Direct Report

Ambuja Cements Ltd. results were better than our estimates on all parameters backed by healthy sales volumes and firm realisations.

Sales volume grew 7.2% YoY to 7.01 metric tonne (versus our estimate: 6.8 metric tonne), realisations were also up 4.6% YoY to Rs 5014/tonne (flat QoQ) versus our estimate of Rs 4,915/tonne leading to revenue growth of 12.1% YoY.

Firm realisations, lower cost of production (down 1% YoY to Rs 3919/tonne) contributed 439 basis points YoY margin expansion.

Renegotiation of contracts, improvement in logistic efficiencies aided by master supply agreement and fixed cost optimisation led to reduction in costs.

Click on the attachment to read the full report:

ICICI Direct Ambuja Cement Q4CY20 Result Update.pdf

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