Ambuja Cement - Q3FY13 Preview - HDFC Securities

Ambuja's Q4 despatches could increase 2-3% y-o-y to 5.8 mn tons while average realisations could grow by ~5% largely cancelling out the two per cent q-o-q decline and supporting a 10% y-o-y revenue growth. Less-than industry realization pressure is expected to result in higher EBITDA/ton.

On the cost front we expect the same trends in freight costs as ACC (due to full impact of diesel hike) and the fall in international coal prices resulting in lower P&F costs negating the impact. Resultant EBITDA/t could decline q-o-q. PAT could decline y-o-y due to a tax credit in 4QCY11. Key monitorables for the company are cement demand and the timeframe to commission fresh capacities.

Ambuja is one of the low-cost and fuel efficient producers of cement in the country.

Source : Equity Bulls

Keywords