Ambuja Cements slips 4% on weak Q4 operational performance

The management said the December 2021 quarter was unfavorably impacted by very steep escalation in fuel prices coupled with subdued demand in multiple regions.

Shares of Ambuja Cements slipped 4 per cent to Rs 345.20 on the BSE in Friday’s intra-day trade after the company reported a weak operational performance for December quarter (Q4) with margin contraction of 651 bps quarter-on-quarter (QoQ), 660 bps year-on-year (YoY) to 15.2 per cent on account of higher fuel prices and flat realisations.

Earnings before interest tax and depreciation and amortization (EBITDA) declined 26 per cent YoY at Rs 568 crore impacted by unprecedented increases of fuel prices. Revenues were up 6.3 per cent YoY to Rs 3,735 crore. Profit after tax was down 36.2 per cent