Motial Oswal: ACC’s Strong Cost Control Drives Margin Improvement
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Motilal Oswal Report
ACC Ltd.’s Q3 CY20 result highlights the strong rebound in cement volumes and the benefits of fixed-cost reduction.
Ebitda grew 21% YoY, with Ebitda/tonne of Rs 1,033/tonne – the highest reported in the last 10 years in the seasonally weak Q3.
Cement volumes were up 1% YoY to 6.49 million tonne (estimate 6.31 million tonne), led by strong rural demand.
However, ready mix concrete remained weak with 43% YoY decline to 0.46 million cubic meter.
We raise our CY20/CY21 Ebitda estimates by 5%/9% and introduce CY22 estimates.
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