Ambuja Cements Clocks 6.8% Net Profit In Q4

Ambuja Cement, one of the most cost-efficient cement companies in India, has released its results for first quarter ended March 2014 and reported a decent y-o-y performance. The company follows calendar year as financial year. The company total operating income grew by 3.61% to Rs 2649.32 crore in Q1CY14 as compared with Rs 2557 crore in Q1CY13 and sale volume also marginally increased by 1.7% to 6.06 MT in said period from 5.96MT in Q1CY13.

EBITDA for the company stood at Rs 587.9 crore in Q1CY14 against Rs 553.12 crore in same quarter of last year with a y-o-y growth of 6.3%. Net profit of the company went up to Rs. 520.8 crore in the quarter as against 487.8 crore in Q1CY13 with a decent growth of 6.8% y-o-y. 

The company was able to mark marginal growth during the quarter on account of cost optimisation and better sale turnover during the quarter. Total operating expense for the company recorded some improvement in the quarter and came down to 82.3% of total operating income from 83.08% in same quarter of last year. 

Further cost optimisation of the company resulted in better operating margin during the said period. Operating EBITDA margin of the company marginally increase to 23% in Q1CY14 from 21.6% in Q1CY13 and net profit margin also showed some improvement and came up to 20% in Q1CY14 from 19% in corresponding quarter of previous year. 

The company has informed that Onne van der Weijde, the Managing Director has stepped down from the Board of the company w.e.f. April 25, 2014 pursuant to his going back to Holcim and Ajay Kapur (Dy. Managing Director & CEO ) has been appointed as the Managing Director & CEO of the company.

At CMP of Rs 210.05 per share, the company’s stock is trading at 25x of its trailing 12-months earning.