ACC Q2 Results Review - Strong Growth With Revival In Cost Efficiencies: Systematix

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.ACC Ltd. reported healthy Q2 FY24 numbers led by strong domestic demand and a sustained focus on cost reduction. While the results missed street consensus, they aligned with our expectations on the revenue and Ebitda fronts. Revenue grew 11.2% YoY led by higher volumes and partially offset by lower realisations. Volumes grew 18.2% YoY (-13.8% QoQ) to 8.1 million metric tonne. Blended realisation dipped 1% QoQ at Rs 5,475 (versus Rs 5,821 in Q2 FY23). Further, higher other income (+208% YoY) led to a higher-than-expected profit after tax of Rs 3.8 billion (versus our estimate of Rs 2.8 billion). The company’s various cost initiatives led to a substantial reduction in input costs. Power and fuel costs stood at Rs 1,096/tonne (-43.1%/-8.5 YoY/QoQ) while freight costs also declined -5.5% QoQ to Rs 1,177 (-18.4% YoY). However, this was partially offset by the higher cost of raw materials which saw a sharp surge of 52% YoY. Blended Ebitda/tonne stood at Rs 677 (versus Rs 818 QoQ). ACC company added 534 dealers to its existing network in the quarter. We are keeping our estimates unchanged and maintaining 'Buy' on the stock with an unchanged target price of Rs 2,336 based on enterprise value/Ebitda multiple of 13 times on FY25E..Click on the attachment to read the full report:.ACC Q2 Results Review - Profitability To Improve; Attractive Valuation: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

ACC Q2 Results Review - Strong Growth With Revival In Cost Efficiencies: Systematix

ACC’s operational performance has seen improvement post the Adani takeover.

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ACC’s operational performance has seen improvement post the Adani takeover.

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