Ambuja Cement and ACC were to merge in 2017 but early this year, the proposal was put on hold due to some constraints. But it looks like, even without the merger taking off, Ambuja Cement has to cheer for.
In its April-June earnings, the company reported a net profit of Rs.499 crore, a jump of 27% (YoY) despite revenue rising just 6% at Rs.3017 crore. The net profit surge, apart from the topline was helped by a Rs.141 crore dividend from ACC.
On the operating profit front, costs weighed heavy, mainly power and fuel and Freight & forwarding expenses. This could be felt in the EBITDA, which was down 4% at Rs.622 crore while margins slipped to 20.6%.
Volumes did well – up over 5% at 6.37 million tonnes and realization/tonne went up marginally to Rs.4736. Better pricing in some key markets helped.
Lafarge Holcim today controls Ambuja Cement with a 63.62% stake and Ambuja Cement has a 54.5% holding in ACC.
The market has given the earnings a big thumbs up and Ambuja Cement is currently the top gainer on the BSE, going up over 7.5% to Rs.225.50. Its 52-week high is at Rs.291.30.