- 08 Feb 2023
- ICICIdirect Research
Ambuja Cement reports improved operational efficiencies backed by group synergies
AMBUJACEM - 637 Change: 20.25 (3.29 %)News: Ambuja Cements operational performance for Q4CY22 improved sharply. Net revenues was up 10.4% YoY, 12.5% QoQ to Rs 4128.5 crore (vs. I-direct estimate Rs 4055.7 crore) led by better sales volume. EBITDA margin improved 687 bps QoQ to 15.2% (vs. I-direct estimate: 12.2%) as synergies with the group led helped to contain the cost especially power & fuel and freight cost. While the company incurred exceptional expenditure of Rs 56 crore towards IT transition costs, better margins and higher other income led to net profit growth of 46% YoY, 167% QoQ to Rs 369 crore
Views: The synergies with the Adani group have started showing results with a sustainable reduction in power & fuel and freight costs during the quarter. Further, the new management remains committed to achieving significant size, scale and market leadership with strong emphasis on margin expansion and world-class ESG standards
Impact: Positive