ACC - Expansions On Track; One-offs Drag Q4 Profitability: ICICI Direct
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ICICI Direct Report
ACC Ltd. reported Ebitda margin of 13.8%, Ebitda/tonne of Rs 742/tonne, lower than our estimate of 16.4%, Rs 871/t, respectively, although sales volumes (up 18.8% QoQ, flat YoY) broadly remained in line with our estimates.
Strong rural demand along with revival of infrastructure projects supported sales volumes.
Ready mix concrete volumes, however, fell 21.5% YoY to 0.73 Mio (up 58.6% QoQ).
While operating performance of the company appear weak mainly due to lower margins, this is due to additional charge of Rs 129 crore in other expenses (pertaining to incentives receivable from government) that led to sharp contraction in margins.
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