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- 01 Feb 2024
- ICICI Securities
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EBITDA/TON CAME LOWER THAN EXPECTATIONS ON ACCOUNT OF MAINTENANCE SHUTDOWN
AMBUJACEM - 595 Change: -0.90 (-0.15 %)News: Standalone revenue increased by 7.5% YoY (+11.8% QoQ) to Rs 4439.5 crore, mainly led by 5.8% YoY (+7.7% QoQ) growth in cement sales volumes to 8.16 million tonnes (mtpa). Net realization improved by 1.6% YoY (+3.9% QoQ) to Rs 5441/ton. Standalone EBITDA increased by 33.1% YoY (+10% QoQ) to Rs 851.1 crore as margins improved significantly on YoY basis, mainly led by decline in power & fuel cost. EBITDA/ton stood at Rs 1043/ton, an increase of Rs 214/ton YoY (flattish on QoQ basis). Standalone PAT for the quarter was up by 39.2% YoY to Rs 513.7 crore. For 9MFY24, revenue is up 11.3% YoY (led by volume growth of 12.3% YoY) with EBITDA/ton at Rs 1035/ton (+40% YoY).
Views: Standalone profitability came lower than expectations on account of maintenance shutdown of clinker capacities which led by increase in overall operational cost by Rs 150/ton. However, Q4FY24 is expected to witness recovery of this additional cost accrued in this quarter. Going ahead, company targets additional cost savings of Rs 400/ton led by optimization in raw material procurement & lead distance and increase in share of green power. Company’s consolidated capacity stands at 77.4 mtpa at present. With an ongoing expansion of 20 mtpa and approval of 12 mtpa in place, company plans to reach cement capacity of 110 mtpa by FY27.
Impact: Neutral