Ambuja Cements tanks after Q3 results

Ambuja Cements lost 5.71% to Rs 195.80 after consolidated net profit jumped 33.68% to Rs 385 crore on 1.36% rise in net sales to Rs 5,957 crore in Q3 September 2019 over Q3 September 2019.

The result was announced after trading hours on Friday, 18 October 2019.

Consolidated sales volume fell 3.16% to 11.63 million tonnes in Q3 September 2019 as against 12.01 million tonnes in Q3 September 2018.

Consolidated EBITDA soared 23.95% to Rs 999 crore in Q3 September 2019 over Rs 806 crore in Q3 September 2018.

In its outlook, the company said that recent reforms announced by the government, i.e. sharp cut in corporate tax, aggressive divestment plan coupled with the Reserve Bank of India's latest interest rate cuts, ought to augur well for the economy. These measures should support growth and hence boost cement demand. Healthy monsoon bodes well for rural housing demand which is a key segment for cement. The above factors along with higher spends in infrastructure and affordable housing are also expected to favor demand.

"In the backdrop of general slowdown in economy and subdued construction activity, Ambuja has delivered yet another quarter of good EBITDA and PAT growth despite lower volumes. This has been possible with a clear focus on product mix enrichment and reduction in logistics costs. Premium products registered a growth of 17% year on year and the company maintained its progress on fossil fuel substitution with alternative fuels and renewable energy. With these efforts, I am happy to announce that Ambuja Cement is now ranked 4th in the global Dow Jones Sustainability Index rankings, emphasizing our strong focus on sustainability. I am also happy to report significant progress at our greenfield project site in Marwar Mundwa." said Bimlendra Jha, managing director and CEO.

Meanwhile, the S&P BSE Sensex was down 332 points or 0.84% to 38,966.48.

On the BSE, 6.49 lakh shares were traded in the counter so far compared with average daily volumes of 1.43 lakh shares in the past two weeks. The stock hit an intraday high of Rs 206 and an intraday low of Rs 192.65 so far during the day.

The stock hit a 52-week high of Rs 244 on 1 April 2019. The stock hit a 52-week low of Rs 184.15 on 9 October 2019.

Ambuja Cements is engaged in the manufacture of clinkers and cement. The firm operates through cement and cement related products segment.

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