Motial Oswal: ACC’s Strong Cost Control Drives Margin Improvement  
A laborer carries a cement bag from a freight train at the Shakur Basti station in New Delhi, India (Photographer Prashanth Vishwanathan/Bloomberg)

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.

Click on the attachment to read the full report:

Motilal Oswal ACC Q3CY20 Result Update.pdf

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