ACC Q3 Results Review - Strong Operating Performance Continues: Systematix

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.ACC Ltd. reported a strong beat on all fronts due to a strong revival led by operational excellence. Revenue up by 8.4% YoY (+10.9% QoQ) to Rs 49.2 billion 7.7% higher than our estimate of Rs 45.7 billion, on the back of exceptional volume growth. Volume up by 17.1% YoY (+9.9% QoQ) to 8.9 million tonnes per annum against our estimate of 8.1 mtpa. Blended realisation stood at Rs 5,526; a decline of 7.4% YoY; up 0.9% QoQ. Ebitda for the quarter more than doubled to Rs 9.0 billion (versus Rs 3.8 billion in Q3 FY23) against our estimate of Rs 7.4 billion aided by reduction across all cost heads. Ebitda margin came in at 18.4%, highest in last six quarters. ACC’s various cost initiatives led to a substantial reduction in input costs. Power and fuel costs stood at Rs 1,139/tonne (-23.3%/+4.2 YoY/QoQ) which was driven by optimization of fuel mix and higher consumption of alternative fuels, while freight costs also declined - 18.4% QoQ to Rs 1,082 (-8.1% YoY). Raw material cost/tonne and staff cost also declined 11.0% and 25.7% YoY to Rs 1,508 and Rs 200 respectively. Consequentially, blended Ebitda/tonne crossed the Rs 1,000/tonne mark after nine quarters to stand at Rs 1,015 (versus Rs 677 QoQ). Adjusted profit after tax rose 377% YoY to Rs 5.3 billion (+37.3% QoQ). PAT margin also expanded 829 bps YoY and came in at 10.7% capacity utilization for the quarter stood at 92%. On the back of strong result, we are raising our Ebitda estimates by 13%/12% for FY24E/FY25E and introduce FY26E financials. We roll over our target price to FY26E which gives a new target price of Rs 3050 from earlier Rs 2,336 based on 14 times on FY26E. We maintain 'Buy' on the stock..Click on the attachment to read the full report:.ACC Q3 Results Review -Robust Quarter Led By Cost Reduction; Downgrade To Accumulate: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ACC Q3 Results Review - Strong Operating Performance Continues: Systematix

From having one of the lowest Ebitda/tonne vis-a-vis peers, the company has witnessed a complete turnaround because of various synergies and continuous thrust on cost optimisation.

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