ACC Ltd. share price target

Strong volume growth and stable operating costs During Q3CY18, ACC delivered 10% YoY volume growth aided by strong demand mainly in east and south markets. However, realisation fell 1.7% QoQ amid aggressive competition and seasonal weakness. ACC's productivity improvement muted inflationary impact of slag, energy and diesel price inflation. Consolidated EBITDA/PAT growth of 8%/17% YoY came is lower than estimated, owing to higher than estimated other expenses. We believe ACC's focus on cost controls to keep cost inflation in check, going forward. While ACC's volume growth would moderate during CY19-20E due to lack of new...

Revenue increased by 5.93% to Rs. 3767.9 Cr in Q2CY18 when compared to the previous quarter. ACC Ltd Q2CY18 results Comment

ACC's Q2CY18 results were a beat on all fronts with sales/EBTIDA/PAT higher than our estimates by 18%/27%/26%, respectively. Sales grew by 14% YoY to Rs37,679 mn driven by higher volumes as well as realization. RMC sales volumes were strong at 0.77 mn cbm (+22% YoY). EBTIDA increased 10% YoY (higher than our forecast) to Rs5,435...

ICICI Securities Ltd | Retail Equity Research ACC's Q2CY18 results were above our estimates. The topline beat (on strong realisation growth) led to higher-than-expected profit during the quarter. Revenues increased 13.7% YoY to | 3,767.9 crore (above I-direct estimate of | 3,559.1 crore) led by 7.4% YoY rise in volume to 7.2 MT (vs. I-direct estimate of 7.2 MT), 5.9% YoY increase in realisation to | 5,204/t (above I-direct estimate of | 4,978/t) The EBITDA margin declined 52 bps YoY to 14.5% due to higher...

Revenue growth led by strong volumes & realisation Driven by healthy growth in both volumes and realisation, ACC posted strong growth in revenue in Q1CY18 on standalone basis. While cement sales volume increased by 8% YoY, realisation rose 7% YoY, leading to 15% growth in revenue during the quarter. The growth in cement volumes was supported by improvement in sand availability leading to growth across regions. While growth in premium products volume (18% YoY) supported realisation. Further, its ready-mix concrete business continued to witness strong traction with sales volume increasing strongly by 16% YoY....

ICICI Securities Ltd | Retail Equity Research ACC's Q1CY18 results came in below our estimates. Revenues increased 14.8% YoY to | 3,557.0 crore (below I-direct estimate of | 3,735.8 crore) led by 7.7% YoY increase in volumes to 7.1 MT (vs. Idirect estimate of 7.5 MT) and 6.5% YoY increase in realisation to | 5,003/t (vs. I-direct estimate of | 4,981/t) Despite cost headwinds (led by higher power and freight cost) ACC...

Cost/t at INR4,407(+5% YoY; - 1% QoQ) was largely in line with our expectation of INR4,420. The1% QoQ decline was due to lower raw material cost offset by higher freight and power & fuel cost. Other expenses were flat YoY, despite higher volumes, due to cost saving measures. Blended EBITDA/t was INR691 (v/s our estimate of INR570) (+10% YoY; +17%QoQ); EBITDA grew 24% YoY to INR4.9b (v/s our estimate of INR4b). Depreciation declined 11% YoY to INR1.5b. Tax rate was higher at 34% v/s 19% in 1QCY17. Reported PAT grew 16% YoY to INR2.4b(v/s our estimate of INR2.1b)

Strong Performance on Higher Realisation; Maintain BUY ACC's reported performance exceeded our estimate in 1QCY18 mainly aided by better-thanestimated average cement realisation. Unlike the expectation of QoQ decline, average realisation improved by 1.3% QoQ owing to higher sales of premium products (~14% of total volume) and meaningful contribution from the Eastern markets. Reported EBITDA surged by 24% YoY and 16% QoQ to Rs4.23bn. Cement EBITDA/tonne stood at Rs573 compared to Rs497 and Rs506 in 1QCY17 and 4QCY17, respectively. Sales volume grew by 7.7% YoY and 2.7% QoQ to 7.11mnT mainly due to strong demand environment in Eastern markets and stabilisation of newly commissioned units in Jamul and Sindri. Notably, operating cost per tonne remained broadly...

ACC Ltd. reported a strong set of numbers in its first quarter of CY2018. Net profit for the quarter came in at Rs. 250cr as compared to Rs. 211 cr in the corresponding quarter of previous year registering a growth of 19% YoY. Total income for the quarter came in at Rs. 3,625 cr as compared to Rs. 3,174 cr in the corresponding quarter of CY 17, up 14% YoY and increased 4% sequentially. EBITDA for the company stood at Rs. 492 cr vs. Rs. 417 cr YoY. EBITDA margin stayed almost the same at 13.6% vs 13.4% in the previous corresponding quarter. Cement Business volume came at 7.11 MT higher by 7.7% compared to the...

ICICI Securities Ltd | Retail Equity Research ACC reported a good set of Q4CY17 numbers. The results were better than our expectation mainly due to the topline beat. The topline beat was led by 27.0% YoY increase in volumes to 6.9 MT (vs. I-direct estimate of 6.0 MT) mainly led by commissioning of Jamul plant (10% of overall capacity) and low base last year...