ACC - Q1CY2013 Result Review - Angel Broking

ACC's top-line rose by 2.3% yoy to Rs. 2,956cr. The company's grey cement division posted a 2.4% yoy decline in top-line as volumes fell by 4.5% yoy and realizations improved only by 2% on a yoy basis. Thus, the yoy growth in topline was on account of the merger of RMC business with the company's standalone operations. OPM at 16.6% was down by 569bp on yoy basis impacted by higher costs. The company wrote back Rs. 141cr of income tax provision pertaining to previous year which reduced its tax expense. Thus PAT came in higher than estimates at Rs. 438cr, although EBITDA was below estimates at Rs. 492cr.

We maintain our Accumulate recommendation on the stock with a Target Price of Rs. 1,361.

Source : Equity Bulls

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