ACC - 1QCY13 Result Update - Nirmal Bang

- ACC's 1QCY13 performance was below our as well as Bloomberg estimates, with EBITDA at Rs4.46bn (16%/15% below our/Bloomberg consensus estimates, respectively), EBITDA margin at 15.3% (170bps below our estimate) and EBITDA/tn at Rs696 (Rs114/tn below our estimate), primarily because of lower sales volume and higher operating costs.

- Following subdued operating performance, adjusted net profit at Rs2.96bn (adjusted for reversal of tax provision for earlier years of Rs1.4bn) was 10%/8% below our/Bloomberg consensus estimates, respectively.

- In the wake of subdued sales volume and higher operating costs, we have cut our earnings estimates by 15% for CY13E and by 16% for CY14E.

- We have also downgraded our rating on ACC from Buy to Hold and cut the target price on it to Rs1,339 (from Rs1,422 earlier).

Source : Equity Bulls

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