Thursday, January 7, 2010


Pricing concern looms despite improved regional mix
All India retail prices have fallen 5-30% qoq Sep-Dec'09 period in response to higher supply, The pricing pressure has been severe in Southern (up to 40% correction) and Central (down ~25%) regions, where ACL has a miscule presence.

CY09-11 revenue CAGR to lag volume growth of 8.4%
We model in sales volume of 21mtpa, a yoy increase of 12.6% and 4.4% in CY10 and CY11 respectively driven by completion of major capex at Bhatapara, Rauri, Dadri and Nalgarh units.

Margin to improve post Bhatapara plant commencement
ACL meets its partial requirement of clinker from ouside as a result of which it's 9M CY09 margin stood at 28.2%, significantly lower than to its peers like ACC (34.6%) and Ultratech (32.7%).

To read the full report: AMBUJA CEMENTS LIMITED