ACC - Expansions On Track; One-offs Drag Q4 Profitability: ICICI Direct
ACC Cement advertisements are pasted on a tram in West Bengal, India. (Photo: Sanjit Das/Bloomberg)

ACC - Expansions On Track; One-offs Drag Q4 Profitability: ICICI Direct

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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 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.

Click on the attachment to read the full report:

ICICI Direct ACC Q4CY20 Result Update.pdf

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