Ambuja Cements drops as operating profit declines in Q1

The company announced Q1 results during trading hours today, 3 May 2013.

Meanwhile, the S&P BSE Sensex was down 102.56 points or 0.52% at 19,633.21.

On BSE, 3.60 lakh shares were traded in the counter as against average daily volume of 1.26 lakh shares in the past one quarter.

The stock hit a high of Rs 194.95 and a low of Rs 186.45 so far during the day. The stock had hit a 52-week low of Rs 135.60 on 23 May 2012. The stock had hit a record high of Rs 220.70 on 5 October 2012.

The stock had outperformed the market over the past one month till 2 May 2013, surging 7.34% compared with the Sensex's 3.65% rise. The scrip had, however, underperformed the market in past one quarter, declining 4.59% as against Sensex's 0.23% fall.

The large-cap cement maker has equity capital of Rs 308.55 crore. Face value per share is Rs 2.

Ambuja Cements' net profit surged 56.3% to Rs 488 crore on 3.3% decline in net sales to Rs 2545 crore in Q1 March 2013 over Q1 March 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) declined 27.8% to Rs 553 crore in Q1 March 2013 over Q1 March 2012.

Despite lower EBITDA, net profit increased by 56.3% year on year in Q1 March 2013 due to exceptional item representing additional depreciation charge of Rs 279 crore in Q1 March 2012 and write back of income tax provision of Rs 117 crore in Q1 March 2013, Ambuja Cements said.

Ambuja Cements' cement production declined 4.1% to 5.84 million tonnes in Q1 March 2013 over Q1 March 2012. Cement sales by volume dropped by 4.1% to 5.80 million tonnes during the quarter compared to corresponding quarter of the previous year, Ambuja Cements said.

With regard to future business prospects, Ambuja Cements said that presently cement industry is facing subdued demand on account of continuing economic slowdown. In an environment of over capacity, realizations are under pressure, the company said. However, with continuously improving operational efficiency and productivity, the company is poised to sustain these pressures, Ambuja Cements said in a statement.

Ambuja Cements is engaged in manufacturing and marketing cement and clinker for both domestic and exports markets.

Powered by Capital Market - Live News