Ambuja Cements strikes 52-week high after strong Q2 result

Ambuja Cements rose 2.19% to Rs 275.85 at 09:39 IST on BSE after net profit surged 76.5% to Rs 399.51 crore on 2.44% growth in total income to Rs 2677.93 crore in Q2 June 2016 over Q2 June 2015.

The result was announced after market hours yesterday, 26 July 2016.

Meanwhile, the S&P BSE Sensex was up 136.71 points or 0.49% at 28,113.23

On BSE, so far 1.69 lakh shares were traded in the counter as against average daily volume of 2.38 lakh shares in the past one quarter. The stock hit a high of Rs 278.35 in intraday trade so far, which is 52-week high for the counter. The stock hit a low of Rs 274.20 so far during the day. The stock 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' operating earnings before interest, tax, depreciation and amortization (EBITDA) rose 56.5% to Rs 601 crore in Q2 June 2016 over Q2 June 2015. Cement sales volumes fell 2% to 5.76 million tonnes in Q2 June 2016 over Q2 June 2015.

Meanwhile, in its acquisition update, Ambuja Cements said that the scheme of amalgamation of Holcim India (HIPL) with the company was approved by the shareholders and High Courts of Gujarat and Delhi, in earlier years. Under the scheme, Ambuja Cement will acquire 24% equity shares of HIPL from Holderind Investments, Mauritius for a cash consideration of Rs 3500 crore, followed by a merger of HIPL with the company. On 29 May 2016, the Foreign Investment Promotion Board (FIPB) has recommended the transaction for approval of Cabinet Committee on Economic Affairs (CCEA). The CCEA on 20 July 2016 approved the acquisition of 24% shares of HIPL by the company for a cash consideration of Rs 3500 crore and subsequent reverse merger of HIPL through a share swap.

In its outlook, Ambuja Cements said that post monsoon construction activities are likely to pick up. The medium to long term outlook for cement demand remains positive considering above normal monsoon forecast this year and government's focus on housing, concrete roads, smart cities and infrastructure development, Ambuja Cements said. The company will continue to focus on improving operational efficiencies, it said.

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

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