Motilal Oswal: Ambuja Cements’ Cost Control Drives Margin Improvement
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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.
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