Gujarat Ambuja Cements Limited has posted a rise of 16% in net profits (before extra ordinary income) for the year ending 30th June 2000. The company has been successful in limiting the decline in operating margins (inclusive of other income) in a year which has been termed as "one of the most difficult years" for the sector.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Other Adjustments (Net)
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted number of shares
Diluted Earnings per share
The rise in net sales comes despite volumes growing by only 1.2% during the year. We had estimated the company’s full year earnings at Rs 4.9 bn, higher than actual numbers. This was largely due to the variance in gross margins. We under estimated the fall out of the drought on the company's realisations.
The stock currently trades at Rs 208, implying a P/e multiple of 7.2x. However, on ignoring the influence of other income on the bottomline the P/e stands increased to 12x.
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