Ambuja cements - q1cy12 result update - higher margin and other inc

Ambuja Cements - Q1CY12 Result Update - Higher margin and other income boost adj. profit - Cen.
http://www.equitybulls.com/admin/news2006/news_det.asp?id=103322 Ambuja Cements - Q1CY12 Result Update - Higher margin and other income boost adj. profit - Cen.
http://www.equitybulls.com/admin/news2006/news_det.asp?id=103322 Ambuja Cements - Q1CY12 Result Update - Higher margin and other income boost adj. profit - Centrum Ambuja Cements' Q1CY12 result was better than our estimates on operational parameters with EBITDA at Rs7.4bn (vs. est. Rs7.2bn) andEBITDA margin at 28.3% against estimates of 27%. The company reported revenue of Rs26.3bn, lower than est. Rs26.8bn primarily due to lower sales volume of 6.05mt vs. est. 6.1mt and realization at Rs4,353/tonne vs. est. Rs4,403/tonne. EBITDA margin at 28.3% was125pp above our estimates of 27% mainly due to lower than expected other expense (Rs648/tonne against est. Rs690/tonne). Higherother income (Rs1,147mn against estimates of Rs720mn) and lower tax rate (29.4% vs. est. 32%) resulted in 11.6% higher than estimatedadjusted profit (adjusted for one time depreciation charges due to change in depreciation policy from SLM to WDV for captive powerplants) of Rs5.1bn. Though, we expect the earnings to improve going forward on the back of higher realization and our expectation ofvolume growth of 8-10% over the next two years for the cement industry, EBITDA margin is expected to remain in the range of 23-24% till Ads by Google
CY14E, much lower than historical average of 30% for the period FY02-CY09. Average RoE of the company is expected to be 17.6% inCY12E and CY13E compared to peak cycle RoE of 32% between CY06-CY09. We maintain Sell on the stock with price target of Rs149, Online Shares Trading India downside of 9.7% from its CMP.
Higher realization and volume help to post better results: Higher cement realization (up 11.2% YoY) and sales volume (up 7.3% YoY)resulted in 19.3% YoY growth in revenues to Rs26.3bn, 1.9% below our estimates of Rs26.8bn. Higher realization and volume led to Online Stock Market Trading 21.7% YoY increase in EBITDA to Rs7.4bn (est.: Rs7.2mn) and EBITDA margin of 28.3%, 1.2pp above our estimates of 27%. Adjusted profit of the company increased 24.5% YoY to Rs5.1bn, 11.6% above our estimates of Rs4.5bn primarily due to higher other income andlower tax rate during the quarter. EBITDA/tonne increased 13.5% YoY to Rs1,231/tonne (est. Rs1,190/tonne).
Increase in operating costs offset by steep increase in realization: Operating costs went up 10.4% YoY led by 21.3% YoY increase inenergy costs due to higher domestic coal price, 10.3% YoY increase in freight costs due to higher railway freight rates and diesel price and 19.8% YoY increase in raw material costs due to higher gypsum and fly ash prices. Despite higher operating costs, EBITDA margin improved 56bps YoY to 28.3% primarily driven by steep 11.2% YoY increase in cement realization.
Earnings estimates revised marginal y upwards: We have revised our EPS estimates upwards by 3.7% to Rs9.7 for CY12E and 3% to Rs11.3 for CY13E considering higher other income and higher sales volume (22.2mt vs. 22.1mt for CY12E and 23.5mt vs. 23.4mt for Challenges persist, maintain Sel on stretched valuations: At the CMP, the stock trades at 14.6x CY13E EPS, 8.2x EV/EBITDA, 2.5x P/BV Bonanza Portfolio
and EV/tonne of US$176. We maintain Sel on the stock with price target of Rs149, downside of 9.7% from its CMP.
Hemant K Gupta
Krish Bhatt
Trinity Investments
Click here to send ur comments or to feedback@equitybulls.com BSE 2009 Holidays
NSE 2009 Holidays
Depository & Dematerialisation
Ads by Google
Grievance Redressal
Investor Guide
State Bank of Bikaner and Jaipur Q4FY12 first cut - Microsec Research
Trading of Securities
ACC - No surprises; maintain Sell - BRICS
Ambuja Cements Ltd - Q1CY12 First Cut - GEPL Capital
Transfer of Securities
Hindustan Zinc Ltd - Q4FY12 - First Cut - GEPL Capital
Your Rights
IndusInd Bank - Firing on all cylinders - Prabhudas Lilladher
Oberoi Realty - Prabhudas Lilladher
Hindustan Zinc - Q4FY12 Result Update - Centrum
Ambuja Cements - Q1CY12 Result Update - Higher margin and other income boost adj. profit - Cen.
http://www.equitybulls.com/admin/news2006/news_det.asp?id=103322 Maruti Suzuki India - Ertiga should lead Maruti's UV market share gain - BRICS
ACC - Q1CY12 Result Update - In-line results, maintain Sell - Centrum
Ambuja Cements - Q1CY12 Result Update - Higher margin and other income boost adj. profit - Centrum
Buy VST Industries - In line with expectations. - ICICIdirect
Sun Pharmaceuticals - Reliance Securities
HCL Technologies - 3QFY2012 Result Update - Angel Broking
Industry Expectations - Interim Budget 2009 HDFC Bank - 4QFY2012 Result Update - Angel Broking
Infotech Enterprises - 4QFY2012 Result Update - Angel Broking
Piramal Glass Ltd. - SPA Securities
Infosys - 4QFY2012 Result Update - Angel Broking
Infosys - Results & Guidance Disappoint – Downgrade to HOLD - Karvy
Infosys Technologies - 4QFY12 Results Update - Motilal Oswal
IndusInd Bank - Q4FY12 result first cut - Microsec Research
HDFC Bank - Q4FY12 result first cut - Microsec Research
HDFC Bank - Q4FY12 Result Update/ Estimate Change - Centrum
HDFC Bank - Steady show; HOLD - Emkay
ACC Ltd. – Q1CY12 First Cut - GEPL Capital
CRISIL - 1QCY2012 Result Update - Angel Broking
MindTree - 4QFY2012 Result Update - Angel Broking
Development Credit Bank - A positive surprise. - ICICIdirect
Current IPOs
Coal India Ltd. - Initiating Coverage - Centrum
Past IPOs
DCB - Results broadly in line with expectations - Nirmal Bang
Mindtree - Operating Results inline, constant OPM gains to lead upgrades - Dolat Capital
IPO Subscription
CRISIL - Results inline; Ratings drive growth - Emkay
Ads by Google
Hathway Cable & Datacom - All set, ready to go! - SPA Securities
Yes Bank - Visit Note - SPA Securities
Gold Exchange Traded Fund
Rural Electrification Corporation - ADD Maintained - ICICISecurities
MF Unique Holding
Hindustan Unilever - Monetizing on its assets - Reliance Securities
Quick Bite - Bata India; Maintain 'BUY'; TP Rs805 - PINC Research
Forthcoming Dividends
Quick Bite – Mumbai Realty - Housing Sales Subdued - PINC Research
ELSS Schemes Comparison
PINC Quick Bite – CESC – Higher RoE to boost future earnings; Maintain 'BUY'; TP Rs350
Quick Bite – Pharma Sector - Compulsory Licensing - PINC Research
Tax Plans
Sector Update - CENSUS 2011- Auto Sector Update - PINC Research
New Fund Offers
Post Budget Reaction - Mr. Ashish Hemrajani, Founder and CEO, BookMyShow.com
NHAI to miss FY12 target - PINC Research
MphasiS - Muted HP channel puts pressure on growth; Downgrade to 'REDUCE'; TP Rs400 - PINC Research
Arbitrages
Initiating Coverage - Cadila Healthcare - Gearing for the next leap
Event Update - Sesa Sterlite merger: Complex structure veils 'VAL'ue dilution - PINC Research
Gujarat Gas Company - Temporary mismatch in cost escalation and price hike; Maintain 'BUY'; TP Rs478 - PINC
Market Whispers
Research
Ranbaxy Laboratories - Strong results driven by Lipitor; muted guidance; Maintain 'SELL'; TP Rs337 - PINC Research
Sector Report - Metal Weekly Update - Metallon Monitor Express
Tata Steel - Worst is over for TSE; Inventory write-down improves outlook; Maintain 'BUY' - TP Rs552 - PINC Research
JSW Steel - CEC recommendations - a ray of light; Maintain 'ACCUMULATE' - TP Rs865 - PINC Research
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
Ambuja Cements - Q1CY12 Result Update - Higher margin and other income boost adj. profit - Cen.
http://www.equitybulls.com/admin/news2006/news_det.asp?id=103322 Website Created & Maintained by : Chennai Scripts

Source: http://ae-finance.abhijeet.in/news_images/news/Ambuja1193.pdf