Credit rating agency CRISIL Ratings has reaffirmed its 'CRISIL AAA/Stable/CRISIL A1+' ratings on the bank facilities and short-term debt programme of Ambuja Cements, third largest cement company in India.

The ratings continue to reflect the company's healthy market position in north and west India, robust operating efficiency and strong financial risk profile because of healthy cash flows. These strengths are partially offset by susceptibility to the commoditised and cyclical nature of the cement industry. Any substantial debt-funded capex or acquisition, which may weaken the financial risk profile, will be a key rating sensitivity factor.

CRISIL Ratings has combined the business and financial risk profiles of Ambuja Cements and ACC. This is because, post the restructuring between ACC and Ambuja Cements, ACC became a subsidiary of Ambuja Cements.

For the three months ending March 2021, the Company's standalone sales volume increased around 26% (year-on-year) driven by healthy demand and low base, which was impacted because of the lockdown in the last two weeks of March 2020. During first quarter of 2021 (January to March), EBITDA margin improved to 27.3% from 21.9% in the corresponding quarter of previous year driven by strong growth in volumes and efficiency gains.

Shares of Ambuja Cements  are trading at Rs 339.75, up Rs 6.3, or 1.89%  at the Bombay Stock Exchange (BSE) on Monday at 3:36 p.m.

The scrip has touched an intra-day high of Rs 342.60 and low of Rs 333.10. The total volume of shares traded at the BSE is 142,000.

Currently, the stock is trading all time 52-week high, which is above 82.22% over the  52-week low of Rs 181.75.