Ambuja Cement Higher realizations boost EBITDA ::Emkay,

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Ambuja Cement

Higher realizations boost EBITDA

HOLD

CMP: Rs157                                        Target Price: Rs165

---

n     EBITDA of Rs3.1bn (+10% yoy) above estimates led by higher Cement realizations (Rs3848/t , +7% yoy, -11% qoq). Higher other income boost above est APAT (Rs1.9bn,+13% yoy) 

n     Though P&F costs at Rs1055/t was higher than est, tight control on fixed costs restricted cost pressures - Staff costs grew just 4.3% yoy while other expenses remained flat.

n     Momentum in cement price hikes (Oct-11 prices already up Rs18-20/bag from Q3CY11 avg) lead to higher CY11 exit realizations driving 2.8% upgrade in CY12E EPS

n     Introduce CY13 EPS at Rs11.2. Recent decline in petcoke & sharp cement price hikes to improve ACL’s margins. Upgrade to Hold -revise TP to Rs165 by rolling over to CY13E numbers