ACC (Q4 CY13)

India Infoline News Service | Mumbai |

ACC revenues grew 1% yoy to Rs27.9bn; below our estimate on back of decrease in cement dispatches, which de-grew at ~2% yoy, against our expectation of a ~3% yoy jump.

CMP Rs1,019, Target Rs1,053, Upside 3.3%
  • Flat revenue growth was below our estimate; volume and realization disappoints

  • Power and freight costs drag OPM by 123bps

  • PBT de-grew by 18% yoy; However, tax write-back results into a PAT growth of 10.1%

  • Downgrade to Market Performer from BUY with a lower 9-mth price target of Rs1,053 

Result table*
(Rs mn)
Q4 CY13
Q4 CY12
% yoy
Q3 CY13
% qoq
Net sales
27,925
27,681
0.9
25,698
8.7
Material costs
4,679
5,284
(11.5)
4,920
(4.9)
Personnel costs
1,560
1,830
(14.8)
1,727
(9.7)
Power and fuel costs
5,842
5,252
11.3
5,585
4.6
Freight cost
6,092
5,585
9.1
5,047
20.7
Other overheads
6,136
5,804
5.7
5,553
10.5
Operating profit
3,618
3,927
(7.9)
2,866
26.2
OPM (%)
13.0
14.2
(123 bps)
11.2
180 bps
Depreciation
(1,550)
(1,433)
8.2
(1,470)
5.5
Interest
(120)
(272)
(55.9)
(110)
8.3
Other income
425
660
(35.6)
393
8.1
PBT
2,372
2,882
(17.7)
1,678
41.4
Tax
359
(401)
(189.3)
(512)
(170.0)
Effective tax rate (%)
(15.1)
13.9
(208.5)
30.5
(149.5)
Adjusted PAT
2,731
2,481
10.1
1,165
134.3
Adj. PAT margin (%)
9.8
9.0
 82 bps
4.5
 524 bps
Source: Company, India Infoline Research,*Standalone

Volume de-grew ~2%yoy leading to lower than expected top-line

ACC revenues grew 1% yoy to Rs27.9bn; below our estimate on back of decrease in cement dispatches, which de-grew at ~2% yoy, against our expectation of a ~3% yoy jump. Realization improved by 2% qoq against our expectations of 4% qoq. As per the management, the demand and realizations are unlikely to improve in the near-term. We build the same in our estimate and cut our CAGR volume estimate over CY13-15 to 8% from 9% earlier.

BSE 1,735.15 [8.45] ([0.48]%)
NSE 1,732.80 [14.15] ([0.81]%)

***Note: This is a NSE Chart

 

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