Ambuja Cements Q1 net up 6.80%
Ambuja Cements Q1:
For the quarter ending March, Ambuja Cements posted a 6.80% improvement in its consolidated net profit at Rs 742.59 crore, improving good operating performance even lockdown revenues fell.
After January to December, the cement producer said that total revenue dropped 9.9% to Rs 6,391.47 crore in the first quarter.
On April 28th, when the company announced a 12% decrease in cement volumes during this period, operating EBITDA increased 10% due to its concentrated cost efficiency. The quarter-long EBITDA margin was 19.4%, up from a year earlier by 454 basis points.
“Through normal monsoon and policy support steps taken by the Government and RBI, Reserve Bank of India, we expect to stabilize demand in the near future,” the company said in a statement.
“Post lockdown, rural demand, and facilities, such as roads and irrigation, expected to increase. India is collectively rising demand for infrastructure, housing for everyone, and urbanization in the medium term, “it said.
In addition, since April 20, but on a small scale, the company has been operational, including numerous plants and warehouses. On the national lockdown, the company temporarily suspended its activities.
“We saved a healthy volume growth by February, which impacted by the nationwide lockdown in March 2020,” said Neeraj Akhoury, MD & CEO.
“With our emphasis on corporate values and behavior to keep our workers safe and protected, I strongly believe we will be stronger from this crisis” he added.
Meanwhile, Reliance Securities has said that it has a stock purchasing rate of Rs 210 as its target price. The brokerage said the success of the firm is a blow to all metrics, primarily due to reduced operating costs and superior performance.
“However, considering the recent record of the company and the current situation of demand, the sustainability of this success is doubtful,” said Reliance Securities.
“Today, the stock will still see a respectable gap opening,” it added.
Besides, today the share of Ambuja Cements trading with the bullish trend. It trades with a gain of 0.35 points reached 172.65 INR with 0.20% up in NSE. Whereas in BSE, it trading with a gain of 0.15 points reached 172.45 INR with 0.087% up.
April 28th Stock Market
On the second day of the week, the stock market trading with the bullish trend. The Sensex traded with a gained 37.11 points reached 31,780.19 level with 0.12% up. Whereas, Nifty traded with a gain of 19.25 points reached 9,301.55 level with 0.21% up.
In the border market, the S&P BSE Midcap traded with a gain of 1.67 points reached 11,631.36 with 0.014% up. Whereas, S&P BSE SmallCap traded with a gain of 37.83 points reached 10,817.39 with 0.35% up. At the same time, Nifty bank traded with a gain of 275.25 points reached 20,356.40 with 1.37% up.