BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
ACC Ltd.’s Q3 CY21 Ebitda at Rs 7.1 billion (up 6% YoY) was broadly in line with consensus estimates.
Total cost/tonne increased 4.6% QoQ (6.8% YoY) primarily led by higher fuel cost, and packing materials and maintenance costs.
Blended Ebitda/tonne (including ready-mix-concrete) grew 7% YoY and declined 15% QoQ to Rs 1,060/tonne (our estimate: Rs 977/tonne).
While investor concern around sharp cost increases seem valid, industry has demonstrated strong pricing resilience in the past.
Our recent channel checks suggest companies have increased prices by Rs 15-20/bag across regions.
We believe ACC with its large pan-India diversified market presence, premium brand positioning and increased focus on cost efficiencies is better placed to sustain / improve margins in the medium term.
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