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- 02 Nov 2023
- ICICI Securities
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OPERATIONAL PERFORMANCE CAME LARGELY IN-LINE WITH EXPECTATIONS; EBITDA/TON IMPROVES SHARPLY YOY TO RS 1020/TON
AMBUJACEM - 597 Change: 2.10 (0.35 %)News: Standalone revenue increased by 8.0% YoY (-16.1% QoQ) to Rs 3969.8 crore, mainly led by 7.4% YoY (-16.8% QoQ) growth in cement sales volumes to 7.6 million tonnes (mt). Net realization improved marginally by 0.6% YoY (+0.9% QoQ) to Rs 5234/ton. Standalone EBITDA increased sharply by 147% YoY (-18.5% QoQ) to Rs 773.4 crore as margins improved significantly YoY led by decline in power & fuel cost, freight cost and positive operating leverage. EBITDA/ton stood at Rs 1020/ton, an increase of Rs 577/ton YoY (flattish on QoQ basis). Standalone PAT for the quarter increased significantly to Rs 643.8 crore as against PAT of Rs 138.9 crore in Q2FY23. H1FY24 volume growth stands at 15.3% YoY to 16.7 mt with EBITDA/ton at Rs 1031/ton (vs Rs 690/ton in H1FY23).
Views: Operational performance was largely in-line with expectations (EBITDA/ton came at Rs 1020/ton vs consensus estimate of Rs 1036/ton). Overall cost has been reduced by ~Rs 545/ton YoY, mainly led by fuel mix optimisation supported by decline in fuel prices, increase in usage of alternative fuels & logistics efficiencies. We expect the operating margins to improve further in the coming period led by sustained operational efficiency measures with positive operating leverage. Increase in cement prices would also be the key factor to watch out for in coming months.
Impact: Neutral