- Ambuja Cements‘ net income saw a significant jump to 17.6 billion rupees, compared to 5.14 billion rupees in the same quarter the previous year.
- Revenue rose by 9.7% year-over-year to 48.5 billion rupees, although it fell short of the estimated 50.27 billion rupees.
- Total costs increased by 22% year-over-year, amounting to 47.3 billion rupees.
- Raw material costs surged by 66% to 7.55 billion rupees, lower than the estimated 9.88 billion rupees.
- Power and fuel expenses slightly increased by 0.9% to 8.66 billion rupees, which was below the estimated 9.57 billion rupees.
- Other income rose sharply to 7.72 billion rupees from 1.08 billion rupees year-over-year.
- EBITDA declined by 29% to 6.01 billion rupees, missing the estimate of 8.33 billion rupees.
- The EBITDA margin fell to 11.9% from 19.2% year-over-year, against the estimated 16.5%.
- Ambuja Cements reversed a tax provision of 8.3 billion rupees and related interest of 622.2 million rupees in matters recognized as current tax credits.
- The company expects to close its acquisition of Orient Cement in Q4 FY25, and is progressing with the merger of Penna and Sanghi.
- Analysts’ recommendations include 28 buys, 9 holds, and 5 sells for the company’s stock.
A look at Ambuja Cements Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking at Ambuja Cements‘ long-term outlook, the company seems well-positioned for the future across key factors. With a solid score of 4 for resilience, Ambuja Cements demonstrates a strong ability to weather market uncertainties and challenges. This resilience factor indicates that the company has strategies in place to adapt and thrive in various market conditions, providing investors with a sense of stability.
Additionally, Ambuja Cements scores consistently across other aspects such as value, dividend, growth, and momentum, with each factor scoring a respectable 3. This balanced scorecard suggests that the company is maintaining a steady course in terms of financial health, investor returns, expansion prospects, and market performance. Thus, investors may find Ambuja Cements to be a reliable and well-rounded choice in the cement manufacturing sector, poised for potential long-term growth and sustainability.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
