Ambuja Cement Q2 Result Update
About the Company:
Ambuja Cements Limited, formerly known as Gujarat Ambuja Cement Limited, is an Indian major cement producing company. The Group's market cement and clinker for both domestic and export markets. The company has entered into a strategic partnership with Holcim, the second largest cement manufacturer in the world from 2006. Holcim had, in January, bought a 14.8 per cent promoters' stake in the GACL for INR 21.4 billion. Currently Holcim holds 61.62% of shares in Ambuja Cements.
QoQ & YoY Performance:
India’s major cement producing company has declared the results for the second quarter of financial year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs.5949.01 crores, up by 2.91% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) are Rs.5433.61 crores, is up by 4.8%. EBITDA numbers decreased by 13.76%.
- YoY Performance: The Company has reported a 22.09% increase in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company have witnessed an uptake by 21.21%. EBITDA numbers surged by 29.93%.
- Profitability of the company: Net profits of the company landed to Rs. 333.45 crores, fell by -0.58% QoQ and surged by 47.71% YoY.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock was closed at Rs.207.65 per share in last trading session. The Company reported average numbers even though global weak trend. Hence, we recommend it to “BUY” for the target of Rs. 230 per share 11% up for two three month view.