Ambuja Cements slips after Q1 results

Ambuja Cements fell 1.60% to Rs 215.25 at 10:25 IST on BSE after net profit rose 6.6% to Rs 520 crore on 3.7% increase in net sales to Rs 2640 crore in Q1 March 2014 over Q1 March 2013.

The company made the announcement on Thursday, 24 April 2014.

Meanwhile, the BSE Sensex was flat at 22,876.36.

On BSE, so far 58,000 shares were traded in the counter, compared with an average volume of 1.58 lakh shares in the past one quarter.

The stock hit a high of Rs 220.05 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 212.80 so far during the day. The stock hit a 52-week low of Rs 147.55 on 28 August 2013.

The stock had outperformed the market over the past one month till 23 April 2014, rising 18.76% compared with the Sensex's 5.15% rise. The scrip had also outperformed the market in past one quarter, gaining 27.81% as against Sensex's 7.03% rise.

The large-cap company has an equity capital of Rs 309.28 crore. Face value per share is Rs 2.

Ambuja Cements' operating earnings before interest, taxes, depreciation and amortization (EBITDA) rose 6.1% to Rs 587 crore in Q1 March 2014 over Q1 March 2013.

Total sales volume (cement and clinker) rose 1.7% to 6.06 million tonnes in Q1 March 2014 over Q1 March 2013.

In its outlook, the company said that although macro-economic condition remains challenging, construction activity is expected to pick up pace after elections. Cement demand is likely to show modest growth. The company would continue to work on improving operational efficiencies, cost optimisation and focus on customer and commercial excellence. The company believes that these initiatives will preserve and grow operating margins.

Ambuja Cements said that during the quarter, the High Courts of Gujarat and Delhi have approved the Scheme of Amalgamation of Holcim (India) with the company. The effect of the scheme will be given on the fulfillment of certain conditions precedent specified therein, the company said.

As part of the succession plan, Mr. Ajay Kapur was identified as successor to Mr. Onne van der Weijde. Mr. Ajay Kapur was appointed CEO effective 1 May, 2012 and was subsequently promoted to the post of Dy. MD effective 1 August, 2013.

Mr. Onne van der Weijde has spent over 9 years in India and is now going back to Holcim. He has, therefore resigned as the Managing Director and from the Board of Directors from 25 April 2014. The board has accepted his resignation and has appointed Mr. Ajay Kapur as the Managing Director from the same date.

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

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