Ambuja Cement Q2 Review - Consistent Performance, Expansion Visibility To Drive Re-Rating: Prabhudas Lilladher
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Prabhudas Lilladher Report
Ambuja Cement Ltd. delivered strong beat on both our and consensus estimates for the sixth consecutive quarter.
Ebitda grew 61% y-o-y (down mere 2% q-o-q despite 11% fall in volumes) at Rs 9.6 billion with a beat of 8%/23% on our/consensus estimate.
Lower than expected costs drove the beat. Operations show massive turnaround over last one year, way above our expectation.
We credit entire of the revival to Ambuja Cement's new leadership.
This is manifested by multifold increase in volumes under master supply agreement, sharp acceleration in investments on waste heat recovery plants and other efficiency enhancement programs (Parvat project), aggressive volume push, new expansion plans and rejuvenated work culture.
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