ACC Q1 Results Review - Weak Quarter; Downgrade To Hold: Axis Securities

Axis Securities Report

ACC Ltd. reported weaker set of numbers led by declining Cement prices in its operating regions. The company reported revenue/Ebitda/adjusted profit after tax de-growth of 1%/12%/22 YoY (below expectations), however it reported Volume growth of 9% owing to higher sale under MSA.

The company recorded an Ebitda Margin of 13.2% against 14.8% YoY (below estimates), primarily owing to lower realization. ACC’s blended Ebitda/tonne stood at Rs 666, down 19% YoY and it reported blended realization/tonne of Rs 5,054 against Rs 5,535, down 9%/3% YoY/ QoQ.

The volume for the quarter stood at 10.2 million tonnes per annum, up 9% YoY (above expectations). Cost/tonne declined by 7% YoY to Rs 4,388 on account of better synergies, and lower fuel and freight costs. ACC reported a profit of Rs 361 crore, down 22% YoY.

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