ACC Q3 Review - Cost Saving Strategies Yielding Result: Motilal Oswal
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Motilal Oswal Report
ACC Ltd.’s Q3 CY21 operating performance was marginally above our estimate, led by higher-than-estimated realisation (down 2% QoQ versus our estimate of a 3% decline).
Ebitda stood at Rs 7.1 billion (our estimate: Rs 6.9 billion). Ebitda/tonne stood at Rs 1,083 (our estimate: Rs 1,021).
ACC's expansion plans are largely on track. It is likely to commission clinker/grinding capacity of 2.7 million tonnes per annum/2.6 mtpa by H1 CY22E and additional grinding capacity of 2.2 mtpa by H1 CY23E.
This should drive 9% volume compound annual growth rate over CY20-23E.
Cost saving efficiencies (project Parvat) and master supply agreement with Ambuja Cements Ltd. are yielding results.
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