HDFC Securities: Ambuja Cements Q2 - Strong Cost Controls + Healthy Realisation
Laborers unload cement bags from freight trains at the Shakur Basti station in New Delhi, India (Photographer Prashanth Vishwanathan/Bloomberg)

HDFC Securities: Ambuja Cements Q2 - Strong Cost Controls + Healthy Realisation

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

Ambuja Cements Ltd. delivered earnings beat in Q2 2020 as other expenses fell sharply, cushioning the impact of the Covid-19 led revenue loss.

Standalone revenue/Ebitda fell 27/15% YoY to Rs 21.77/5.95 billion. Dividend income from ACC Ltd, however, buoyed adjusted profit after tax by 10% to Rs 4.53 billion. Volume fell 29% YoY, mainly on the large sales loss in April.

However, execution of pent-up retail demand drove flattish volume growth in May/June. We expect continued traction in retail sales to yield slower volume decline of 10% in second half 2020 versus the 19% YoY fall in first half.

Click on the attachment to read the full report:

HDFC Securities Ambuja Cements Q1FY21 Results Review.pdf

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