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ACC (Q3 CY13)

ACC revenues grew 4% yoy to Rs25.7bn on back of increase in cement dispatches, which grew at 3% yoy, against our expectation of a 1% yoy drop.

January 01, 1970 5:30 IST | India Infoline News Service
CMP Rs1,157, Target Rs1,348, Upside 16.5%
  • Top-line grew 3.9% yoy led by increase in volumes

  • Realizations were flat sequentially, better than our estimate of 2% fall

  • Jump in RM cost (on inclusion of RMC operation) drags OPM by ~7.7ppts

  • PAT de-grew by 51% yoy, lower than our estimate

  • Maintain BUY with a lower 9-mth price target of Rs1,348

Result table*
(Rs mn)
Q3 CY13
Q3 CY12
% yoy
Q2 CY13
% qoq
Net sales
25,697
24,739
3.9
28,510
(9.9)
Material costs
4,976
3,061
62.6
4,780
4.1
Personnel costs
1,724
1,405
22.7
1,725
(0.1)
Power and fuel costs
5,580
5,666
(1.5)
5,916
(5.7)
Freight cost
5,084
4,877
4.3
5,730
(11.3)
Other overheads
5,469
5,086
7.5
5,459
0.2
Operating profit
2,864
4,644
(38.3)
4,900
(41.6)
OPM (%)
11.1
18.8
(763 bps)
17.2
(604 bps)
Depreciation
(1,443)
(1,352)
6.7
(1,411)
2.3
Interest
(110)
(257)
(57.1)
(179)
(38.2)
Other income
412
546
(24.5)
354
16.3
PBT
1,723
3,581
(51.9)
3,665
(53.0)
Tax
(514)
(1,094)
(53.1)
(1,090)
(52.9)
Effective tax rate (%)
29.8
30.6
(2.4)
29.7
0.2
Adjusted PAT
1,209
2,487
(51.4)
2,575
(53.0)
Adj. PAT margin (%)
4.7
10.1
-
9.0
-
Source: Company, India Infoline Research,*Standalone

Increase in volume translated into higher than expected top-line

ACC revenues grew 4% yoy to Rs25.7bn on back of increase in cement dispatches, which grew at 3% yoy, against our expectation of a 1% yoy drop. Realization remained flat when compared to same quarter previous year but dropped by mere 1% qoq (against our expectations of 2% qoq). Going forward, we expect realization to improve on back of beginning of peak construction season and election in five states followed by a general election.  


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