Ambuja Cements - Q1CY2013 Result Review - Angel Broking

Ambuja cements posted a disappointing set of numbers for 1QCY2013. Top-line fell by 3.4% yoy to Rs. 2,545cr with cement volumes declining by 4% on a yoy basis and realization remaining flat yoy. OPM at 21.6% was down by 738bp on yoy basis impacted by higher costs, freight costs in particular. However, during the quarter company had Rs. 28cr of write back towards interest on income tax, which boosted its other income. The company also wrote back Rs. 117cr of income tax provision pertaining to previous which reduced its tax expense. Thus PAT came in higher than estimates at Rs. 488cr, although EBITDA was below estimates at Rs. 553cr.

We maintain our neutral rating on the stock.

Source : Equity Bulls

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