Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

ACC 1QCY21 Results Review Report - Strong margins! - HDFC Securities

Posted On: 2021-04-20 11:06:19 (Time Zone: UTC)

Mr. Rajesh Ravi, Institutional Research Analyst, HDFC Securities & Mr. Saurabh Dugar, Institutional Research Analyst, HDFC Securities

During 1QCY21, ACC reported strong volume growth and all-round opex reduction. ACC's consolidated revenue/EBITDA/APAT grew by 4/23/25% QoQ (+23/47/74% YoY) to INR 42.9/8.6/5.6bn respectively. Unitary EBITDA firmed up 23% QoQ to INR 1,039/MT, led by lower input and employee costs. As ACC moved to the lower tax regime in 4QCY20, APAT grew 25% QoQ (+74% YoY). We maintain our BUY rating on the stock with an unchanged TP of INR 2,185/share (11x Mar'23 consolidated EBITDA).

1QCY21 key highlights: Cement volumes grew 22/3% YoY/QoQ on robust demand. NSR fell 1% QoQ (+4% YoY) on a high base as prices remained firm during 1Q. Utilisation fell slightly from 94% to 93% QoQ (vs 80% YoY) as on strong demand, despite ACC ramping up its Sindri plant. Significant reduction in raw material and employee costs led to unitary opex falling by 6% QoQ despite higher slag and fly ash prices. Strong EBITDA margins and healthy volumes, thus, led to unitary EBITDA firming up 23% QoQ (+25% YoY) to INR 1,039/MT. RMC division's sales volume/revenue/ EBITDA fell 11/8/22% YoY (even on a low base) to 0.83 cbm/ INR 3.6bn/INR 0.3bn respectively on lower demand trend in the infrastructure segment.

Outlook: ACC had accelerated its Capex spends towards its ongoing expansions beginning 4QCY20. It has now guided the commissioning of its greenfield project at Ametha and associated GUs by 2QCY22. The WHRS work at Ametha has been initiated and projects of Jamul and Kymore are also on track. These expansions have boosted ACC's volume growth outlook CY22 onwards. We maintain our earnings estimates and retain our BUY rating on the stock with an unchanged TP of INR 2,185/share (11x Mar'23 consolidated EBITDA).

Shares of ACC LTD. was last trading in BSE at Rs.1824.45 as compared to the previous close of Rs. 1876.85. The total number of shares traded during the day was 219560 in over 13479 trades.

The stock hit an intraday high of Rs. 1982 and intraday low of 1810. The net turnover during the day was Rs. 414358399.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Q4FY21 Result Update - Pidilite Industries - ICICI Direct

Escorts Ltd - Q4FY21 First Cut - ICICI Direct

Jindal Stainless - Q4FY21 First Cut - ICICI Direct

Maintain BUY on Sonata Software - Growth visibility improves - HDFC Securities

Maintain BUY on KEC International - Near term challenges persist - HDFC Securities

Maintain BUY on Kalpataru Power Transmission - In-line performance - HDFC Securities

Tata power Q4FY21 Results Review - Inline result; alternative to InvIT on cards - HDFC Securities

Mahindra Lifespaces Q4FY21 Results Review - On track - HDFC Securities

Mphasis - Q4FY21 first cut: Muted performance - YES Securities

Voltas - Q4FY21 first cut: All round beat with strong operating performance led by EMPS segment - YES Securities

HG Infra Engineering - Q4FY21 first cut: Stellar performance - YES Securities

Polycab India - Q4 FY21 First cut - YES Securities

JMC Projects (India) Ltd - Q4FY21 Result Update - YES Securities

Asian Paints Ltd - Q4FY21 Result Update - YES Securities

Lupin - Q4FY21 Result Update - YES Securities

Godrej Consumer Products Ltd - Q4FY21 Result Update - YES Securities

Orient Electric Ltd - Q4FY21 Result Update - YES Securities - Q4FY21 Result Update - YES Securities

Birla Corporation Ltd - Q4FY21 Result Update - YES Securities

Lupin Q4FY21 Results Review - Positives in the price - HDFC Securities

Jindal Steel & Power - Net debt to remain comfortable as 6mtpa Angul expansion commences - ICICI Securities

Hindalco Industries - Saturation of an earnings trigger - ICICI Securities

Indigo Paints - Differentiation is the key; initiate at ADD - ICICI Securities

Lupin - Margin improvement factored in valuations - ICICI Securities

Blue Star - Focusing on core competencies - ICICI Securities

KEC International - Strong growth, healthy cashflow - ICICI Securities

Kalpataru Power & Transmission - Healthy growth, asset sales to aid cashflow - ICICI Securities

Asian Paints - Leader demonstrating leadership - ICICI Securities

Prince Pipes and Fittings - Beat on all counts - Q4FY21 Result - ICICI Securities

Polymer price tracker - PVC prices fall after a year; volatile journey ahead - ICICI Securities

Westlife Development - Good 4Q; retains store expansion target - ICICI Securities

Pidilite Industries - Input cost inflation impacts performance - ICICI Securities

UPL - Strong volume growth maintained - ICICI Securities

Piramal Enterprises - DTA derecognition and interest reversals weigh on earnings; strategic priorities remain in place - ICICI Securities

Q4FY21 Company Update - Saregama India - ICICI Direct

Q4FY21 Result Update - Asian Paints - ICICI Direct

Cadila Healthcare - Divests animal health business - ICICI Securities

Q4FY21 Result Update - Granules India - ICICI Direct

Q4FY21 Company Update - Firstsource Solutions - ICICI Direct

Q4FY21 Company Update - Sonata Software - ICICI Direct

Company Update - Cadila Healthcare - ICICI Direct

Q4FY21 Result Update - Kalpataru Power - ICICI Direct

Q4FY21 Result Update - KEC International - ICICI Direct

Q4FY21 Company Update - Ltd - ICICI Direct

Maintain REDUCE on Asian Paints - Exceeds expectations - HDFC Securities

JMC Projects Results Report - Poised for growth - HDFC Securities

Maintain ADD on Godrej Consumers - Miss in 4Q margin; inspiring addition to team - HDFC Securities

Maintain BUY on Birla Corporation - Healthy performance - HDFC Securities

Subscriber watch - Bharti wins more market share across categories - ICICI Securities

Siemens Ltd - Healthy margins with growth recovery - ICICI Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020