Ambuja Cements gains after reporting Q1 results

Ambuja Cements rose 1.32% to Rs 223.15 at 9:30 IST on BSE after the company reported Q1 results.

The result was announced after market hours yesterday, 28 April 2016.

Meanwhile, the S&P BSE Sensex was down 59.34 points or 0.23% at 25,543.76.

On BSE, so far 14,720 shares were traded in the counter as against average daily volume of 2.1 lakh shares in the past one quarter. The stock hit a high of Rs 223.75 and a low of Rs 221 so far during the day. The stock had hit a 52-week high of Rs 256.50 on 15 July 2015. The stock had hit a 52-week low of Rs 185 on 29 February 2016.

The large-cap company has equity capital of Rs 310.38 crore. Face value per share is Rs 2.

Ambuja Cements' net profit fell 4.38% to Rs 303.76 crore on 0.88% rise in total income to Rs 2580.85 crore in Q1 March 2016 over Q1 March 2015. Ambuja Cements said that inspite of lower production and distribution cost net profit and operating earnings before interest, tax, depreciation and amortization (EBITDA) were lower mainly due to lower prices, additional provision towards contribution to District Mineral Foundation and increased advertising and promotion expenses. Operating EBITDA fell 11.8% to Rs 450 crore in Q1 March 2016 over Q1 March 2015. Sales volumes rose 9.5% to 5.86 million tonnes in Q1 March 2016 over Q1 March 2015 on the back of good demand.

In its outlook the company said that considring favourable announcements in the Union Budget and other initiative by the government for infrastructure, housing, smart cities, concrete roads etc., the medium to long term outlook for cement demand remains positive.

Ambuja Cements said that the board of directors yesterday, 28 April 2016 have withdrawn the scheme of amalgamation of Dirk India, a wholly owned subsidiary with the company. The board on 27 July 2015 had approved the scheme.

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

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