Wednesday, July 29, 2009


ACC Ltd. declared its second quarter result today. The net sales came below the street expectations while, net profit was above. The sales were around 5.2% below Bloomberg consensus estimate, whereas the net profit was around 35.5% above, which was mainly on account of lower input cost


The net sales for the quarter ended June 09 grew by 14.79% to Rs. 2,188.21 cr, backed by higher sales volumes and better price realization

The average realization per bag (50kg) increased by 12.04% y-o-y to Rs. 201.86 mainly on account of price hike taken in late March and April 2009 while, the volume increased by
2.46% y-o-y to 5.42 million tones

Driven by benefits of prices and significant cost moderations, EBIDTA for the quarter improved by whopping 90.62% y-o-y to Rs. 766.48 cr while its EBIDTA margins stood at 34.40% registering a massive 1,347 basis points (bps) improvement on a y-o-y basis.

The power and fuel cost and other expenditure as a percentage of net sales declined by 383 bps and 465 bps to Rs. 376.22 cr and 403.3 cr respectively, as compared to that of last year
§ Company’s interest expense increased by 47.5% y-o-y to a level of Rs. 15.96 cr while the other income declined by 62.34% y-o-y to Rs. 17.55 cr

Company’s Net Profit for the quarter ended June 09 rose by significantly 84.7% to Rs. 470.94 cr as compared to Rs. 255.01 cr reported a year ago. The increase in the net profit was on account of easing commodity prices

Company’s Diluted EPS grew by around 84.7%, to Rs. 25.05/ share

Significant new capacity is expected to be added in the coming months, demand, led by housing, retail and infrastructure sectors is expected to remain firm. However, prices of major inputs for
the cement Industry, including coal, may rebound from recent lows because of an anticipated uptrend in the commodity business cycle. Thus, the profitability of the companies might be
impacted going forward

To see full report: ACC LTD.