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Ambuja Cement slides after Q1 results

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Capital Market
Last Updated : Jul 26 2019 | 11:04 AM IST

Ambuja Cement declined 1.82% to Rs 210.85 at 10:28 IST on the BSE, extending recent losses after Q1 results.

Meanwhile, the S&P BSE Sensex was down by 106.3 points or 0.28% to 37,724.21.

On the BSE, 45000 shares were traded in the counter so far compared with average daily volumes of 1.49 lakh shares in the past two weeks. The stock had hit a high of Rs 215.5 and a low of Rs 209.1 so far during the day. It hit a 52-week high of Rs 245.25 on 3 September 2018 and a 52-week low of Rs 188.5 on 31 October 2018.

Shares of Ambuja Cement fell 2.94% in three trading sessions to its current market price of Rs 210.85 from a recent closing high of Rs 217.25 on 23 July 2019.

Ambuja Cement's consolidated net profit rose 12.3% to Rs 622.93 crore on 3.4% rise in net sales to Rs 7068.79 crore in Q1 June 2019 over Q1 June 2018. The result was announced during market hours yesterday, 25 July 2019.

The company's consolidated earnings before interest, tax, depreciation and amortization (EBITDA) increased 14.68% to Rs 1484 crore in Q2 June 2019 over Q2 June 2018. The EBITDA Margin grew to 21% in Q2 June 2019 from 19.4% in Q2 June 2018.

Pace of construction activities slowed down due to liquidity issues in the market and weak demand. Cement realisation registered a growth of 9% year on year. Cost increase on account of higher fuel prices year on year, was partly mitigated by lower cost of raw materials, supply chain efficiencies.

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The company stated that re-election of a stable Central Government is expected to provide policy continuum and growth momentum. Recent actions such as lower interest rates, reforms in IBC and slew of measures announced for the financial sector to ease the liquidity, augur well for the economy. The Government's current budgetary allocation in infrastructure development, i.e. construction of concrete roads, interlinking of rivers, irrigation projects and affordable housing is expected to have a favourable impact on cement demand.

Ambuja Cements is a major cement producing company in India. The principal activity of the company is to manufacture and market cement and clinker for both domestic and export markets.

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First Published: Jul 26 2019 | 10:32 AM IST

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