While the demand is on the mend for Ambuja Cements, the scarcity of imported coal/pet coke and surging costs could lead to industry-wide production cuts and margin compression
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
The third-quarter results of Ambuja Cements were decent and in-line with the recovery in economic activity. The growth momentum remains intact through the end of the year, although margins may be under pressure because of the steep hike in input costs. Quarter result highlights Ambuja Cements reported revenues of Rs 3,237 crore in Q3 CY21. The subsiding impact of Covid-19 and an improvement in the vaccination rate led to a healthy rise in demand across all end-markets. The volumes for the…
