ACC revenues grew 16% yoy to Rs28.2bn, higher than our estimate of Rs27.7bn.
|(Rs m)||Q2 CY12||Q2 CY11||bps yoy||Q1 CY12||bps qoq|
|Power and fuel costs||6,038||5,687||6.2||6,763||(10.7)|
|OPM (%)||24.5||23.8||61 bps||22.3||213 bps|
|Effective tax rate (%)||30.4||30.5||(0.3)||10.6||188.1|
|Adj. PAT margin (%)||14.8||13.8||101 bps||17.0||(214) bps|
|Extra ordinary items||-||-||-||3,354||-|
ACC revenues grew 16% yoy to Rs28.2bn, higher than our estimate of Rs27.7bn. Realization improved higher than expected at 7.3% qoq (and 13.1%yoy) against our expectation of +3.7% qoq. Delay in monsoon and shutdown of few plants for maintenance purpose resulted into better pricing scenario in the current quarter. Volumes grew at a tepid rate of 2.5% yoy.
OPM expands by 60bps in line with estimates
As expected hike in railway freight, increase in gypsum price restricted margin expansion during the quarter but lower international coal prices mitigated the impact to an extent. EBITDA margin grew ~60bps to 24.5% and in line with our estimate. OPM is expected to remain under pressures on back of escalating input cost over the next 2 quarters. Moreover, any hike in diesel prices would also lead to higher fuel and freight costs.
|Q2 CY12||Q2 CY11||bps yoy||Q1 CY12||bps qoq|
|Power and fuel costs||21.4||23.4||(193)||23.4||(196)|
Reported PAT stood at 4.2bn, up 24% yoy against our expectation of 3.9bn. The outperformance was largely on back of unexpected jump in other income (up 65% yoy). Depreciation surged 17% yoy on back of new capacity addition.
Maintain Market Performer with tgt of Rs1,170
Pre-exceptional PAT is expected to increase by 17% CAGR over CY11-13. However, we expect cement demand to take a hit in case of any drought-like situation, although we have not penciled in such a scenario in our estimates. We maintain Market Performer rating with a 9-mnth price target of Rs1,170
|Y/e 31 Mar (Rs m)||CY10||CY11||CY12E||CY13E|
|Yoy growth (%)||(3.9)||25.2||22.7||11.9|
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