Motilal Oswal: Ambuja Cements’ Cost Control Drives Margin Improvement  
Gravel and sand are loaded onto a conveyor belt at the concrete plant. (Photographer Jack Atley/Bloomberg)

Motilal Oswal: Ambuja Cements’ Cost Control Drives Margin Improvement  

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.

Motilal Oswal Report

Ambuja Cements Ltd.’s Q3 CY20 results highlight the strong rebound in volumes and benefits of fixed cost reduction.

Ebitda grew 55% YoY (on a low base), with Ebitda/tonne of Rs 1,200/tonne – the highest reported over the last 10 years in the seasonally weak Q3.

The company announced interim dividend of Rs 17 per share amounting to Rs 33.8 billion (approximately 60% of cash pile), implying 7% dividend yield.

However, this is only a one time dividend. We expect dividends to revert to usual level of approximately Rs 3 per share.

Click on the attachment to read the full report:

Motilal Oswal Ambuja Cements Q3CY20 Result Update.pdf


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