Ambuja Cements - 1QCY13 Result Update - Nirmal Bang

- Ambuja Cements (ACL) reported weak performance for 1QCY13 with net sales at Rs25.4bn (10%/5% below our/Bloomberg consensus estimates, respectively) and EBITDA at Rs5.12bn (24%/16% below our/Bloomberg consensus estimates, respectively), primarily due to lower sales volume and realisation versus our estimates.

- However, RPAT was 22%/28% above our/Bloomberg consensus estimates, respectively, at Rs4.87bn, primarily driven by tax write-back, interest on income tax for earlier years and CENVAT credit.

- Adjusted net profit was 40% below our estimate at Rs3.33bn.

- Following weak realisation and higher costs, we have cut our earnings estimates by 14% for CY13E and by 13% for CY14E and also downgraded our rating on ACL from Buy to Hold and cut the target price on it from Rs209 to Rs197.

Source : Equity Bulls

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