ACC has reported a weak and below estimate operating performance, as operating profit stood at Rs2.16bn vs. our estimate of Rs2.86bn. An unexpected increase in staff costs (+21% yoy and +40% qoq) has been the prime reason for subdued performance. ACC's endeavour towards downsizing surplus manpower led to a non-recurring severance expenditure of Rs320mn, which inflated employee costs. EBITDA/tonne came in at Rs405 as against Rs303 and Rs461 seen during 4QCY14 and 3QCY15, respectively. Sales volume grew by 4% yoy to 6.0mnT. Upcoming capacities in Eastern region are slightly delayed and expected to be commissioned by the end of 2QCY16E, which will...