Add Ambuja Cement Ltd For Target Rs. 355 - Yes Securities
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Result Highlights
* Cement volumes for the quarter was in‐line with our estimates at 7.17 MT; translating into 24.5% y/y growth. Low base and robust demand scenario in operating markets led to healthy volume growth.
* Blended NSR/te was Rs 5,051 during the quarter witnessing a moderate improvement of ~3% y/y (vs. est. of +3.6% y/y). Company’s special product volumes grew 82% y/y aiding to improvement in net realization for the company.
* Accordingly, net sales for the company stood at Rs 36.2 bn – a growth of 28% y/y and 1% above our estimates.
* Company’s operational performance has been a very positive surprise during the quarter. Absolute EBITDA at Rs 9.7 bn grew by 62% y/y and was 21% above our estimates/34% above consensus estimates.
* EBITDA/te came in at robust levels of Rs 1,362 (est. of Rs 1,145); a healthy improvement of 30% y/y. Beat on operational level was on the back of (1) stringent control on fixed costs, (2) lower than expected clinker cost, (3) improvement in operating efficiencies on freight side and (4) optimization of sales mix.
* Net profit for the company stood at Rs 6.65 bn which grew by 67% y/y.
Our View:
* Ambuja delivered exceptional set of nos for Q1CY21 with cement volumes in‐line with estimates at 7.17 MT (+24.5% y/y and 1% above est.) but a massive beat on operational level. Company’s EBITDA came in at Rs 9.77 bn; a sharp increase of 62% y/y and 21% above our estimates/34% above consensus estimates. Although realizations were in‐line with our estimates, stringent control on fixed costs along with improvement in operating efficiencies on freight and optimization of sales mix resulted into outperformance on EBITDA level.
* Company plans to commission Greenfield integrated plant at Marwar Mundwa (3 MTPA clinker and 1.8 MTPA grinding) by Q3CY21E providing visibility of incremental volume dispatches of 5 MT in medium term. Accordingly, in the near term, we expect volume/EBITDA CAGR of 14.2%/19.4% over CY20‐CY22E. Balance sheet would continue to grow stronger as we expect net cash reserves of Rs 55.3 bn by CY22E vs Rs ~29 bn in CY20 despite capex plan of ~Rs 21 bn during the same period in the form of on‐going capacity addition and investments in WHRS
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at https://yesinvest.in/privacy_policy_disclaimers
SEBI Registration number is INZ000185632
Above views are of the author and not of the website kindly read disclaimer
