ICICI Securities: ACC Surprises Positively For Third Consecutive Quarter
Workers carry bags of cement (Photographer Dimas Ardian/Bloomberg)

ICICI Securities: ACC Surprises Positively For Third Consecutive Quarter

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

ACC Ltd. continue to surprise positively for third consecutive quarter with Q3 CY20 Ebitda increasing 21% YoY to Rs 6.7 billion - higher than our / consensus estimates.

Volumes grew 1.4% YoY versus our estimate of 2% YoY decline; while realisation grew 2.8% YoY (our estimate 2% YoY).

Cement Ebitda/tonne increased 25% YoY to Rs 1,015/tonne; while blended Ebitda/tonne grew 19% YoY to Rs 991/tonne.

The company’s cost efficiency programme ‘Parvat’ which seems to be targeting cost savings of Rs 150-200/tonne and increased traction in master supply agreement with Ambuja Cement Ltd. would drive sustainable improvement in ACC’s profitability, in our view.

Click on the attachment to read the full report:

ICICI Securities ACC Q3CY20 Result Update.pdf

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