Ambuja Cements has cracked nearly 14% to Rs 165 in early morning deals on BSE after reporting 31% year-on-year (yoy) decline in its June quarter profit to Rs 324 crore on higher input cost and lower realization.
Net sales too decline about 9% yoy to Rs 324 crore due to weak demand in certain regions.EBITDA or operating margins contracted 700 bps to 21% as realisations remained lower.
Meanwhile, Holcim the promoter of ACC and Ambuja Cements has announced that it will increase its stake in Ambuja Cements from 50.5% to 61.4% in a two stage deal.
Post the completion of this deal Ambuja, will become the flagship company of Holcim in India and hold a 50.01% stake in ACC. Ambuja intends to further increase its stake in ACC by 10% for an investment of up to Rs 3,000 crore through open-market purchases.
According to analyst at Angel Broking the deal is expected to bring in operational benefits for both ACC and Ambuja Cements due to reduction in operational costs due to supply chain optimization.
Net sales too decline about 9% yoy to Rs 324 crore due to weak demand in certain regions.EBITDA or operating margins contracted 700 bps to 21% as realisations remained lower.
Meanwhile, Holcim the promoter of ACC and Ambuja Cements has announced that it will increase its stake in Ambuja Cements from 50.5% to 61.4% in a two stage deal.
Post the completion of this deal Ambuja, will become the flagship company of Holcim in India and hold a 50.01% stake in ACC. Ambuja intends to further increase its stake in ACC by 10% for an investment of up to Rs 3,000 crore through open-market purchases.
According to analyst at Angel Broking the deal is expected to bring in operational benefits for both ACC and Ambuja Cements due to reduction in operational costs due to supply chain optimization.
