Sector Indices

Name Value Change %
BSE 100 9,304.31 [42.6] [0.5]
BSE 200 2,181.79 [8.3] [0.4]
BSE 500 6,825.15 [22.3] [0.3]
BSE AUTO 9,713.36 [22.2] [0.2]
BSE BANKEX 11,986.92 [81.7] [0.7]
BSE CD 6,168.83 [16.8] [0.3]
BSE CG 10,293.52 [28.0] [0.3]
 

ACC (Q2 CY10) – MP (Target Rs864, Upside 5.9%)

India Infoline Research Team / 14:40 , Jul 23, 2010

CMP Rs816, Target Rs864, Upside 5.9%

  • Revenue declines by 3%, in-line with our estimates as volume de-grow
  • Surge in employee, freight and other overheads pulls down OPM by 764bps yoy   
  • PAT declines by 26.1% to Rs3.59bn; in-line with our expectation
  • Trades below replacement cost; maintain Market Performer
Result table*
(Rs m) Q2 CY10 Q2 CY09 % yoy Q1 CY10 % qoq
Net sales 20,622 21,199 (2.7) 21,363 (3.5)
Material costs (2,641) (2,481) 6.4 (3,067) (13.9)
Personnel costs (1,063) (968) 9.8 (896) 18.7
Power and fuel costs (3,934) (3,738) 5.2 (3,926) 0.2
Freight cost (2,700) (2,547) 6.0 (2,753) (1.9)
Other overheads (4,339) (3,734) 16.2 (4,154) 4.5
Operating profit 5,944 7,730 (23.1) 6,567 (9.5)
OPM (%) 28.8 36.5 (764 bps) 30.7 (192 bps)
Depreciation (962) (784) 22.7 (935) 2.8
Interest (141) (159) (11.7) (127) 10.5
Other income 183 177 3.0 264 (30.9)
PBT 5,024 6,964 (27.8) 5,769 (12.9)
Tax (1,435) (2,107) (31.9) (1,777) (19.2)
Effective tax rate (%) (28.6) (30.3) 170 bps (30.8) 225 bps
Reported PAT 3,589 4,856 (26.1) 3,991 (10.1)
Adjusted PAT 3,589 4,856 (26.1) 3,991 (10.1)
Adj. PAT margin (%) 17.4 22.9 (550 bps) 18.7 (128 bps)
Ann. EPS (Rs) 76.4 103.4 (26%) 85.0 (10%)
Source: Company, India Infoline Research; * On Standalone basis

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