The market capitalization of Ambuja Cements Limited as of early March, 2018 is close to Rs.47,446.99 crore.
Company's Wealth and Recent Performance
Q2 FY 2018-19
- For the quarter ended on June 30, 2018, Ambuja Cements Limited reported its consolidated total income to be Rs.6,917.1 crore, as against an income of Rs.7,288.7 crore reported for the same quarter of the previous fiscal year.
- Considering the profitability of the company for the quarter, Ambuja Cements disclosed its consolidated profit before tax to be at Rs.1,002 crore. With respect to the June quarter of the previous financial year, it marks a marginal decrease of a little over Rs.20 crore.
- The cement conglomerate reported its net profit for the period to be at Rs.684.46 crore.
- The company’s basic earnings per share (EPS) dropped from Rs.2.80 to Rs.2.65, y-o-y.
Q1 FY 2018-19
- For the three months ended on March 31, 2018, Ambuja Cements Limited disclosed its consolidated revenue from operations to be at Rs.6,460 crore. In comparison to the revenue from operations reported for the same quarter of the previous year, it marks a marginal drop of roughly Rs.70 crore.
- However, despite this drop in the revenues, the company managed to report a healthy profit for the quarter owing to a significant reduction in the expenses, y-o-y.
- The company’s consolidated net profit for the period was stated to be Rs.514.34 crore, in comparison to a profit of Rs.396.9 crore stated for the March quarter of the FY17. This translates into an increase of a little over 20% y-o-y.
- Consequently, the company’s basic earnings per share grew y-o-y from Rs.1.47 to Rs.1.96.
- For the year ended on December 31, 2017, Ambuja Cements Limited reported its consolidated total income to be Rs.25,605 crore. For the same period of the previous year, the company had reported a total income of Rs.23,400 crore.
- For the FY 2017, the company reported its profit before tax to be at Rs.2,767.7 crore, as against a profit before tax of Rs.2,007.8 crore disclosed for the previous year.
- The company’s net profit for the period was observed to be at Rs.1,950.2 crore - an increase of a little over 30% y-o-y. Consequently, the company’s basic EPS for the year stood at Rs.7.64 as against Rs.5.57 for the same period a year ago.
- The company’s non-current liabilities for the year stood at Rs.1,352.2 crore.
Ambuja Cements Limited Stock Trends in 2018
- Earlier in March 2018, Ambuja Cements Limited had announced that their operating performance in the last quarter has been higher-than-expected mainly because a higher volume of growth and better operational efficiencies.
- The operating profit increased from 48% y-o-y and 39% q-o-q to Rs.4.4 billion. The company had earlier made an estimate of Rs.3.9 billion.
- Although there was a sharp rise in power and fuel cost per tonne and the cost of freight per tonne, cost of operation decreased by 1% y-o-y and 6% q-o-q to Rs.3,681. This was a result of the company's cost optimisation initiatives.
- Ambuja Cements Limited's standalone revenue derived from operations rose from 21.9% to Rs.2,712.6 crore in Q4 in comparison to Rs.2,224.5 crore in the same quarter in 2016.
- By the end of the quarter of December 2017, the volume of cement sales showed a growth worth 17.4% at 5.87 million.
- On March 1, 2018, the Ambuja Cements Limited share price was trading at levels close to Rs.250. Over the course of the month, the scrip moved on to lose a little over 6% to go below the Rs.230 mark.
- However, in April, the shares moved up to recuperate its previous losses and ascend back to its previous levels at Rs.250. The company also announced a final dividend of 100% in the same month. The closing price of the scrip on April 30 was Rs.250.65 on the NSE.
- This rise was followed by a bear run through the months of May and June. The scrip shed roughly 20% steadily over the course of these two months to go close to the Rs.200 mark. A similar trend was seen in the month of July as well. The Ambuja Cements Limited shares were traded at levels varying from Rs.190 - Rs.210. In July, the shares also hit their 52-week low at Rs.189.
- In the month of August, however, the shares staged a recovery and the stock price of Ambuja Cement rose back to its previous levels above Rs.230. As of September 14, the shares were seen trading hands at levels above Rs.225.
Limited Stock Trends in 2017 and 2018
- In January, 2018, the Open Price of a share of Ambuja Cements Limited was Rs.272.55 at BSE and Rs.271.10 at NSE. However, the Last Price declined to Rs.261.80 at NSE and Rs.261.05 at BSE.
- On the first day of February 2018, the Open Price of the share were recorded at Rs.263.10 at BSE and Rs.263.40 at NSE. The Last Price in this month was Rs.252.60 at BSE and Rs.252.35 at NSE. The High Price in this particular month was Rs.252.35 at NSE and Rs.253.30 at BSE.
Limited Stock Trends in 2016 and 2017
- On January 1, 2016, the Open Price of Ambuja Cements Limited was Rs.203.00 at BSE and Rs.203.50 at NSE. The first day of February, 2016 witnessed an Open Price of Rs.197.00 at BSE and Rs.196.50 at NSE. So, as is evident, there was a mild decline in the price of the share during this period.
- On April 1, 2016, the Open Price of a share of Ambuja Cements Limited was at Rs.231.90 at NSE and Rs.233.00 at BSE. However, the Last Price of a stock in the end of April was recorded at Rs.220.25 and Rs.219.85 at NSE.
- In the month of August, 2016, the Open Price of a share was recorded to be Rs.271.15 at BSE while it was Rs.271.65 at NSE. The Last Price stood at Rs.279.00 at BSE and Rs.271.00 at NSE. Hence, while the share of price remained almost the same at NSE, it observed a small increase at BSE. Also, the High Price at BSE was recorded at Rs.282.00, at NSE it stood at Rs.272.95.
- On September 1, 2016, the Open Price of a share stood at Rs.273.00 at BSE and Rs.273.70 at NSE. The Last Price on the same day hovered around Rs.277 at both, NSE and BSE. The High Price on the first day of the month stood at Rs.279.00 at BSE while at NSE, it was Rs.278.85. On the last day of the month, the Open Price was Rs.255.80 at NSE and Rs.255.00 at BSE. The Low Price at the same day was at Rs.249.65 at BSE while at NSE, it was at Rs.249.55. The High Price on the last day of the month was recorded to be Rs.255.80 at NSE and Rs.255.00 at BSE.
- The Open Price of an Ambuja Cements Limited share on December 1, 2016 was Rs.212.40 at BSE while at NSE, it was Rs.211.90. On the same day, the Last Price was recorded to be Rs.206.90 at NSE and Rs.206.75 at BSE. On the same day, the Low Price stood at Rs.206.00 at BSE and Rs.206.05 at NSE. The High Price on this day revolved around Rs.212. By the end of December 2016, the Open Price of a share was at Rs.204.20 at BSE and Rs.202.50 at NSE. The Low Price on the same day was Rs.202.50 at NSE and Rs.204.20 at BSE. However, the High Price at the end of the month revolved around Rs.207.
- On January 2, 2017, the Open Price of a share of the company was recorded to be at Rs.209.00 at NSE and Rs.211.00 at BSE. The High Price on this day hovered around Rs.215.20 at BSE and Rs.215.45 at NSE. However, the Last Price on this day stood at Rs.214.05 at BSE and Rs.229.05 at NSE. On the last day of the month, the price of a share stood at Rs.209.00 at NSE and Rs.211.00 at BSE. The High Price on this day hovered around Rs.215.20 at BSE and Rs.215.45 at NSE. However, the Last Price on this day stood at Rs.214.05 at BSE and Rs.229.05 at NSE.
- On April 3, 2017, the Open Price of a share was recorded at Rs.239.15 at NSE while it stood at Rs.239.60 at BSE. The Last Price on the same day was recorded at Rs.236.05 at BSE and Rs.237.55 at NSE. The High Price on the same day floated around Rs.242.00. By the beginning of the next month, the Open Price was at Rs.244.60 at NSE and Rs.244.70 at BSE. The Last price was recorded at around Rs.241 while the High Price revolved around Rs.244.
- The Open Price on September 1, 2017 stood at Rs.281.00 at BSE and Rs.281.90 at NSE. The Last price on this was Rs.282.60 at NSE and Rs.282.30 at BSE. While the Low Price was at around Rs.280, the High Price stood at Rs.284. By the end of the month, the Open Price had dropped down to Rs.268.15 at NSE while at BSE, it was at Rs.268.10. The Last Price was recorded to be at Rs.266.00 at BSE and Rs.266.45 at NSE. The High Price on this day stood at Rs.274.00 at NSE and Rs.274.00 at BSE. The Low price revolved around Rs.264 towards the end of the month.
- On December 1, 2017, the Open price of a share of Ambuja Cements Limited stood at Rs.264.05 at BSE while at NSE, shares were priced was Rs.263.65. The Last Price on this day was recorded at Rs.263.55 at NSE and Rs.263.60 at BSE. The High Price on this day, revolved around Rs.268.15 at BSE and Rs.268.25 at NSE. The Low Price on the same day was recorded at Rs.262.30 at both, BSE as well as NSE. Towards the end of December, 2017, the Open price at BSE had risen to Rs.273.00 and Rs.272.40 at NSE. The Last Price was recorded to be around Rs.272.05 at NSE and Rs.271.20 at BSE. While the Low Price stood at around Rs.270, the High Price was observed to be around Rs.273.
Should you invest in Ambuja Cements Limited?
In the financial year, the share price of Ambuja Cements Limited have witnessed a significant rise. The group has earned a reputation worldwide for its constant delivery of quality products. Since the time of its inception, Return on Equity has been one of the priorities of the company. In the last quarter, the company’s revenue surpassed the predictions made by financial experts across the country. Ambuja Cements Limited's standalone revenue derived from operations rose from 21.9% to Rs.2,712.6 crore in Q4 in comparison to Rs.2,224.5 crore in the same quarter in 2016. Hence, it will be a good idea to invest in the shares of this company for a long term.
One of the leading cement manufacturers, Ambuja Cements Limited started off as Gujarat Ambuja Cements Limited. It is the second largest cement producing company in the world and the first in Asia. The company manufactures and markets cement and clinker for export and domestic markets. The company has a strategic partner with Holcim, one of the leading suppliers of cement in the world. Ambuja Cements Limited is the first cement manufacturer in India to have built a confined port with around three terminals. It runs along India's western coastline to fuel timely delivery of cement to its customers. It also facilitates environmentally cleaner and cost-effective delivery of the same.
History of the Company
One of the leading manufacturers of cement in India, Ambuja Cements Limited began production in 1986. It started off with the name Gujarat Ambuja Cements Limited. However, later it changed its name. In the 2006, international cement giant, Holcim took over the management of the company. At present, Holcim holds around 50% equity in Ambuja Cement Limited. In the past years, Ambuja Cements Limited has grown significantly. In the year 1981, it was jointly promoted by Mr. NS Sekhsaria and his associates, Mr. Suresh Mulani, Gujarat Industrial Investment Corporation Limited (GIIC), and Mr. Vinod K Neotia, for launching a cement project in the joint sector. The company was changed into a public limited company in March, 1983. In the year 1985, the company received a letter of intent to increase its capacity from 7,00,000 tonnes to 14,00,000 tonnes per year.
Mr. NS Sekhsaria, Chairman
He was the Chief Executive and Managing Director of Ambuja Cements Limited since the time of the company's inception in the year 1983 to 2006. He pursued a BTech degree in Chemical engineering from the University of Bombay. A reputed entrepreneur, he founded Ambuja Cements and led it to grow into one of the most profitable and prestigious cement manufacturing companies in India. Mr. Sekhsaria helped the company to expand its production from 0.7 million tonnes to 15 million tonnes. Under his able leadership, the company's market capitalisation rose from Rs.18 crore to Rs.14,000 crore. He has also led the company's evolution from a single-unit to a pan-India company.
Mr. Martin Kriegner, Director
At present, he is the head of the South East Asia and India operations of LafargeHolcim. From August 2016, he has also been shouldering the designation of the Executive Committee Member of LafargeHolcim. Mr.Kriegner holds an MBA degree from University of Economics, Vienna. He also has a doctorate in law. It was in the year 1990 that he joined Lafarge and was made the CEO of Lafarge Perlmooser AG Austria, in 1998. In the past, he has also handled responsibilities as the CEO for Cement, RMX, and aggregates, CEO of Lafarge India, Regional president Cement for Asia, Lafarge; and as Area Manager of Central Europe for LafargeHolcim handling the markets of Austria, Serbia, Switzerland, Italy, Croatia, South Germany, among many other countries.
Mr. Christof Hassig, Director
A professional banker with a Master's degree in Banking and Advanced Management from Harvard Business School, Mr. Hassig has been an integral part of the company for a long time now. He heads mergers, corporate strategy, and acquisitions at LafargeHolcim Limited. Before getting appointed at the erstwhile Holcim Limited, Mr. Hassig has been associated with the UBS for more than 20 years in different capacities, including that of an Investment Banker and a Global Relationship Manager. He has handled treasury functions and corporate finance for more than 15 years at Holcim. In the year 2013, Mr. Hassig took over an added responsibility by taking up the role of the Head, Mergers and Acquisitions.
Mr. Roland Kohlers, Director
He joined the Holcim group in the year 1994 as the Head Management Consultant and since then, there has been no looking back. He has been progressing through grades to be given the responsibility of the Executive Committee in the year 2010. He has been looking at the functions of the group since then. He was a significant member of the integration team for the renowned merger of Holcim and Lafarge. He also took responsibilities as an interim COO of LafargeHolcim. He is the Chairman of LafargeHolcim Foundation for Sustainable Construction. He holds an MBA from the University of Zurich and has pursued an Advanced Executive Program from INSEAD (European Institute for Business Administration).
Ambuja Cements Limited in NSE, BSE, and Indices
Ambuja Cements Limited’s stocks are available for trading on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The codes for the same are mentioned below:
BSE Code: 500425
NSE Code: AMBUJACEM
Ambuja Cements Limited
Gir Somnath District
Elegant Business Park
MIDC Cross Road B
Off Andheri-Kurla Road
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