Oberoi Realty: ORL surprised positively as pre-sales volume recovered to 93% of 2QFY20 level. Booking value also rebounded to Rs 3.3bn during the quarter (vs 3.2bn in 2QFY20) on higher realization. We expect the momentum to continue for ORL, given the stamp duty cut, low-interest rate, strong brand recognition and market consolidation. Residential launches remain on track in Borivali, Goregaon and Thane. Besides, the company is mulling a platform to unlock value from existing commercial office space. We tweak our FY21/22/23 estimates by +2/-4/-3% and maintain BUY with a revised TP of Rs 497. ACC: During 3QCY20, ACC reported consolidated net sales/EBITDA/APAT growth of 0/21/20% YoY to Rs 35.37/6.71/3.64bn respectively (ahead of our estimates of Rs 34.52/5.71/2.98bn). Buoyancy in retail demand, lower fuel costs and continued cost controls boosted earnings rebound. The earning beat (vs our estimate) is on account of better than expected operating cost reduction. While we expect retail sales to accelerate further, non-trade should also recover going ahead, boosting volume outlook. We are also enthused by ACCs continued surprise on fixed cost controls, which is driving margin expansion. Subsequently, we upgrade estimates and maintain BUY with a higher target price of Rs 1,820/share (10x Sep22E consolidated EBITDA). L&T; Technology Services: We maintain REDUCE on L&T; Tech (LTTS), as valuations more than adequately factor in the recovery curve. 2Q print was slightly ahead of estimates, and the growth rebound (despite 3Q furlough uncertainty) is supported by a pick-up in deal activity (deal pipeline and wins higher by ~16% over the previous quarter). While LTTS...

Q2CY20 revenue fell 37.3% YoY, affected majorly due to a drop in cement volumes (-33.3% YoY) as nation-wide lockdown continues. Also, ready mix concrete volumes witnessed steep declines (-82.4% YoY)...

We expect the volume decline to slow down in 2HCY20, leading to 15% volume decline in CY20. Healthy pricing, benign fuel prices, and strong cost controls should aid 4% EBITDA CAGR during CY19-22E (despite fall in CY20E). We maintain BUY with a revised target price of Rs 1,610/sh. ACC delivered earnings beat as sharp reduction in fixed opex moderated the impact of COVID-led revenue loss. Consolidated revenue/EBITDA/APAT fell 37/33/41% YoY to Rs 26.02/5.25/2.71bn respectively in 2QCY20. While cement sales fell 34% YoY, NSR remained flattish YoY (+11% QoQ). A weak 2Q, pulled down 1HCY20 consolidated revenue/EBITDA/APAT by 24/15/16% YoY to Rs 61.04/11.12/5.94bn respectively.

ACC reported good set of numbers for 2QCY20 on the back of better pricing and controlled costs yet again. Being a COVID influenced quarter, volume was anyways expected to decline sharply but pricing was much ahead of our expectation with 10.5% QoQ growth. EBITDA as a result at Rs5.24bn was 13.8% ahead of our estimate. This quarter saw loss of ~30 days of production but its impact on volume has not been very severe as industry demand picked up in May and June. ACC reported 33% YoY decline in volume, which was in line with our expectation. However, better pricing completely offset the impact of lower volume as cement realisations were up by a massive 10.5% QoQ against our expectation of 5.5% growth....

ACC Limited Q2CY20E got impacted due to nation-wide lockdown for the first month of April. Consolidated revenue stood at Rs 2,602 Cr, a decline of 37.3% YoY/25.7% QoQ, EBITDA stood at Rs 525 Cr, decreasing by 32.9% YoY/10.4% QoQ and PAT at Rs 271 Cr, down 40.5% YoY/16.1% QoQ. The sharp decline in revenue could be attributed to the nation-wide lockdown for the month of April and then a gradual but rather slow re-opening of the economy. The total sales of cement by volume decreased to 4.8 million tonne (down 34% YoY) and RMX volume declined to 0.15 million cubic...

Witnessed strong recovery in volumes in May and June 2020. ACC posted strong set of Q2CY20 earnings with 34%/21% beat on our/consensus PAT estimates. Higher than expected realisations and lower other expenses contributed to the beat. ACC delivered strong show on containing costs given its fixed cost heavy operations and high energy and RM costs. Company reduced power and fuel...

ACC posted -37.3%/ -32.9%/ -40.6% YoY de-growth in revenue/ EBITDA/ APAT to Rs26 bn/ Rs5.2 bn/ Rs2.7 bn in Q2CY20 due to 33.3% YoY volume de-growth which was partially offset by 0.6% YoY realization growth (+11.5% QoQ). We expect (-0.6%)/ 7.0%/ 11.5% revenue/ EBITDA/ APAT CAGR over CY19-21E led by -14.6%/ 12.3% volume growth and 3.0%/ 2.0% cement realization growth in CY20E/ CY21E. We broadly maintain our revenue estimates for CY20E and CY21E. We...

performance. On the back of strong pricing tailwinds especially for the Southern exposure of ACC and optimizationoffreightandmisc.expenses,companyposted an EBITDA of Rs 5.25 bn (32.9% y/y) 19%/9% above...

EBITDA margin expanded 310bps YoY to 16.7% on cost optimization supported by better supply chain management and product mix. However, Adj. PAT was down 6.6% YoY on lower other operating...

Given the steep increase of Rs7590/bag in April-May, softness w as South expected in prices. Prices in (Rs/bag) AP/Telangana fell Rs20/bag MoM as it w itnessed steepest increase. Prices in...

Our channel check suggests, average cement prices at an all India level is up 0.8% MoM in June-2020. Cement prices are holding up the sharp price hike seen in May20. Recall, in May-20 cement price increased by ~6% MoM. Price hike is implemented for the partial recovery of fixed costs as demand took a hit due to lockdown. Cement industry production decreased by 86% YoY for April 2020 (latest data available). Led by pent up demand, cement companies has seen sharp increase in the utilization to 65% in May-20 (implying cement volume of -20% to 25% YoY in May-20). We expect the gradual improvement in demand led by rural India. Segment wise, cement demand is driven by Infra (25%), Commercial (14%) and Housing (61%). In Housing, its sub segment Rural housing (35%) is expected to...

ACC Ltd reported de-growth of 11% YoY in top-line to`35,017mn on account of fall in sales volumes to 6.6mn MT (down by 12% YoY). Realisations remained flat YoY as cement prices were steady across its key operating markets. EBITDA in Q1CY20 stood at `5,865mn up ~10%YoY with corresponding EBITDA margins at 16.7% (up 318 bps YoY and 343 bps QoQ). Increase in EBITDA was reported due to lower raw material costs and power and fuel costs. During the quarter, the company also commissioned two new plants of RMC (Ready Mix concrete) to strengthen its footprint in the building materials industry....