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Yes Securities Report
ACC Ltd. reported mixed-bag performance, where revenue grew by 8% YoY aided by strong volume growth of 10% YoY, even though net sales realisation corrected by 2% YoY in Q4 FY23.
Despite power/tonne corrected by 18% YoY, the sharp rise in raw material cost by 59% YoY kept overall total cost up by 3% YoY in Q4 FY23. Therefore, muted net sales realisation and elevated cost had confined Ebitda/tonne to Rs 551 declined by 33% YoY in Q4 FY23.
Ebitda/profit after tax came at Rs 4.68/ 2.35 billion register a de-growth of 26/41% YoY respectively. In Q4 FY23, ACC charged exceptional items of Rs 664 million of restructuring cost.
Ongoing expansions of Ametha 3.3 million tonnes per annum clinker (EC approvals of 2.75 mtpa) and 1 mtpa cement capacity is expected to be commissioned by Q2 FY24, while it looks like Salai Banwa 2.2 mtpa has gone on back burner.
Hence, we have trimmed our volume estimates by 7/11% for FY24/25E, which moderates Ebitda/profit after tax by 12/8% in FY24E and 11/9% in FY25E.
However, ACC recently added grinding unit at Tikaria of 1.6 mtpa (also commissioned waste heat recovery system at Kymore / Jamul), which coupled with ongoing expansion will take total capacity to ~39 mtpa by FY25E.
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