Ambuja Cements share price rises 2.45% post December quarter earnings
BusinessToday.In February 19, 2019
The Ambuja Cements share price rose in trade today on nearly threefold rise in consolidated net profit to Rs 1,377.88 crore in the December 2018 quarter, benefiting from write-back of tax provisions relating to earlier years. The company, which follows January-December fiscal, had posted a consolidated net profit of Rs 478.39 crore in the corresponding quarter last fiscal, Ambuja Cements said.
Ambuja Cements share price rose up to 2.45% to 202.70 level compared to the previous close of 197.85 on the BSE. Ambuja Cements share price has fallen 22.39% during the last one year and lost 10.85% since the beginning of this year. 19 of 36 brokerages rate the stock "buy" or 'outperform', 13 "hold", three "underperform" and one "sell", according to analysts' recommendations tracked by Reuters.
Ambuja Cements share price is trading below its 50-day and 200 day moving averages of 211.71 and and 216.85 levels, respectively.
Consolidated revenue from operations stood at Rs 6,728.68 crore in the fourth quarter as compared with Rs 6,173.01 crore in the year-ago period, it added.
"We have registered a steady growth in our top line. In addition, we also have been able to withstand cost volatility during this quarter, thanks to accelerating efforts on alternative fuels, optimized fuel mix and plant efficiency improvements," Ajay Kapur, managing director and chief executive officer at Ambuja Cements said.
He added that a well-defined marketing and commercial strategies, increased sales of value-added premium products and continued focus on customer engagement helped the company improve its reach in core markets. On the outlook, he said: "The addition of 4.6 million tonne (MT) of cement volumes from the greenfield integrated cement plant at Marwar Mundwa, Rajasthan, will further strengthen our position in high-growth core markets of North and Gujarat."
The cement volume grew 4.4 per cent in the fourth quarter, it added. For the full year 2018, the company's consolidated net profit was Rs 2,973 crore as compared with Rs 1,945 crore in the previous year. Net sales were at Rs 25,419 crore as compared to Rs 23,126 crore in 2017. The firm's board has recommended payment of dividend of Rs 1.50 per share with a dividend payout of 31 per cent, Ambuja Cements said.
Edited by Aseem Thapliyal