Quarterly Results Show Mixed Performance for Ambuja Cements in Q1 FY25

Jul 31 2024 02:32 PM IST
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Ambuja Cements has reported a negative performance in the quarter ending June 2024, with a decrease in its score from 12 to -8. However, the company's operating cash flow and short-term liquidity have improved, while its PBT, PAT, and operating profit have declined. The EPS and DPR have also decreased, indicating a decline in profitability and dividend distribution. MarketsMojo has given a 'Hold' call for the company's stock based on these financials.

Ambuja Cements, one of the leading players in the cement industry, has recently declared its financial results for the quarter ending June 2024. The company has seen a negative performance in this quarter, with its score falling from 12 to -8 in the last three months. However, there are some positive aspects to the financials as well.

One of the key highlights of the financials is the company’s strong operating cash flow, which has been the highest in the last three years at Rs 5,645.82 crore. This indicates that the company has been able to generate higher cash revenues from its business operations. Additionally, the company’s cash and cash equivalents have also been at their highest in the last six half-yearly periods, standing at Rs 11,068.87 crore. This shows that the company’s short-term liquidity is improving.


On the other hand, there are some areas where Ambuja Cements needs to work on. The profit before tax less other income (PBT) for the quarter has fallen by 40.09% year on year, indicating a negative trend in the near term. Similarly, the profit after tax (PAT) has also fallen by 28.6% year on year, showing a negative trend in the near term. The operating profit (PBDIT) for the quarter has been the lowest in the last five quarters, and the operating profit margin has also decreased to its lowest at 15.40%. This indicates a deterioration in the company’s efficiency.


Moreover, the earnings per share (EPS) for the quarter have been the lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The dividend payout ratio (DPR) has also been the lowest in the last five years, showing that the company is distributing a lower proportion of its profits as dividends.


Overall, Ambuja Cements’ financial performance for the quarter ending June 2024 has been negative, with some areas of improvement and some areas that need attention. MarketsMOJO has given a ‘Hold’ call for the company’s stock based on these financials.


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