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.
Gujarat Ambuja: A sterling performance - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 29, 2001

    Gujarat Ambuja: A sterling performance

    Gujarat Ambuja has reported a 112.4% rise in profits for the first quarter ended September 30, 2001 to Rs 532 m.This was primarily led by a 17.2% rise in sales to Rs 3,401 m.

    (Rs m) 1QFY01 1QFY02 Change
    Gross Sales 2,903 3,401 17.2%
    Other Income 36 89 148.9%
    Expenditure 2,053 2,346 14.2%
    Operating Profit (EBDIT) 849 1,055 24.2%
    Operating Profit Margin (%) 29.3% 31.0%  
    Net Interest 322 247 -23.4%
    Depreciation 312 335 7.4%
    Profit before Tax 251 562 124.4%
    Tax 0 30  
    Profit after Tax/(Loss) 251 532 112.4%
    Net profit margin (%) 8.6% 15.7%  
    No. of Shares (eoy) (m) 147.1 155.1  
    Diluted Earnings per share* 6.8 13.7  
    (* annualised)      

    Cartelisation has benefited the company in terms of higher realisations. Average realisation has gone up by 4.2% to Rs 2,332 per metric tonnes (MT). Cement volumes have increased by 13.8% to 1.4 MT during the aforesaid quarter. Production during 1QFY02 has increased by 15.8% to 1.5 MT.

    Interest costs are down 23.4% to Rs 247 m as the company has utilised the sum raised through private placements to retire high costs debts. During the quarter, the company allotted 8 m shares at a price of Rs 225 per share on preferential allotment basis to Affinity Investment Limited, an affiliate of Warburg Pincus and also issued 8 m warrants. Each warrant is convertaible into one share, at the option of Affinity Investment Limited at any time upto September 2002 at a price of Rs 225 per share.

    One should also keep in mind that cement companies started showing higher growth in profits from the December quarter. So, to that extent, profit growth might be on the lower side in coming quarters as the year on year effect wears down. However, a buoyant housing industry and a slew of road construction projects initiated by the government in the current year should continue to benefit Gujarat Ambuja in the long run.

    The scrip is currently trading at Rs 161 on a P/E multiple of 11.7x the annualised 1QFY02 earnings.

     

     

    Equitymaster requests your view! Post a comment on "Gujarat Ambuja: A sterling performance". Click here!

      
     

    More Views on News

    UltraTech: Post-Acquisition Cement Capacity Augmented to 93 MTPA (Quarterly Results Update - Detailed)

    Aug 11, 2017

    UltraTech Cement completed the acquisition of cement plants of Jaiprakash Associates Limited (JAL) and Jaypee Cement Corporation Limited (JCCL) during the quarter ended June 2017.

    Ambuja Cement: Fall in Other Income Drag Bottomline Lower (Quarterly Results Update - Detailed)

    Aug 11, 2017

    While topline witnessed growth on the back of higher cement sale volumes, a 50.5% YoY fall in other income weighed on Ambuja's bottomline during the quarter ending June 2017.

    ACC: Cementing Growth through Capacity Expansion and Favorable Sectoral Developments (Quarterly Results Update - Detailed)

    Jul 20, 2017

    Expanded capacity helped ACC strengthen its market presence in eastern region during the quarter ended June 2017.

    UltraTech: One of the Weakest Quarters in Years (Quarterly Results Update - Detailed)

    May 18, 2017

    Cement demand was weak because of subdued housing demand, volatile cement prices, and rising fuel costs.

    Ambuja Cem: Net Profits zoom up 361% YoY During Jan-March Quarter (Quarterly Results Update - Detailed)

    May 8, 2017

    Stock price jumps up on Ambuja-ACC merger talks...

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    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

    GRASIM IND. SHARE PRICE


    Aug 21, 2017 12:02 PM

    TRACK GRASIM IND.

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

    GRASIM IND. 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE GRASIM IND. WITH

    MARKET STATS