X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Ambuja Cem: Net Profits zoom up 361% YoY During Jan-March Quarter - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • May 8, 2017 - Ambuja Cem: Net Profits zoom up 361% YoY During Jan-March Quarter

Ambuja Cem: Net Profits zoom up 361% YoY During Jan-March Quarter
May 8, 2017

Ambuja Cements has announced its results for the first quarter of the calendar year 2017. During the quarter ended March 2017, while the company's topline grew by 5.4% YoY, net profits surged by 360.7% YoY owing to sharp declines in certain non-operating expenses. Here is our analysis of the results:

Performance summary
  • On a standalone basis, net sales during the quarter reported single-digit growth of 5.4% YoY.
  • The growth in the topline was contributed by both volumes and realisations. Cement sales volumes increased 2.7% YoY from 5.86 million tonnes in 1QCY16 to 6.02 million tonnes in 1QCY17. Cement realisation also witnessed a similar improvement.
  • Operating profit was lower by 3.1% YoY. However, the operating profit margin expanded from 12.9% in 4QCY15 to 13.4% in 4QCY16 on account of a significant decline in material costs.
  • Other income (inclusive of other operating income) reported a drop of 13.5% YoY.
  • Finance costs doubled during the reported quarter.
  • Depreciation charges declined sharply by 61.9% YoY. This was mainly on account of amortisation of goodwill in the Jan-March 2016 quarter.
  • Tax expenses were lower by 45.9% YoY during the quarter.
  • Despite the poor operating performance, the sharp dip in non-operating expenses lifted net profits by 360.7% YoY. Net profit margin expanded from 1.9% in 1QCY16 to 8.5% in 1QCY17.

    Standalone financial performance snapshot
    (Rs m) 1QCY16 1QCY17 Change
    Net sales 27,455 28,934 5.4%
    Expenditure 23,199 25,283 9.0%
    Operating profit (EBITDA) 4,255 3,651 -14.2%
    EBITDA margin 15.5% 12.6%
    Other income 1513 1,310 -13.5%
    Depreciation 3,830 1,460 -61.9%
    Finance costs 188 377 100.5%
    Profit before tax & exceptional items 1,751 3,123 78.4%
    Exceptional gain/ (loss) 0 0
    Profit before tax 1,751 3,123 78.4%
    Tax 1,216 658 -45.9%
    Effective tax rate 69.4% 21.1%
    Profit after tax 535 2,465 360.7%
    PAT margin 1.9% 8.5%
    No of shares (m) 1,985.6
    Diluted EPS (Rs)* 5.9
    P/E (times) 44.6

    *trailing twelve month earnings

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

AMBUJA CEMENT SHARE PRICE


Sep 21, 2017 02:09 PM

TRACK AMBUJA CEMENT

  • Track your investment in AMBUJA CEMENT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

AMBUJA CEMENT 5-YR ANALYSIS

Detailed Financial Information With Charts

COMPARE AMBUJA CEMENT WITH

MARKET STATS