Cement producer ACC Limited on Thursday reported 61 percent jump in its consolidated net profit at Rs 192.6 crore for July-September quarter, as against Rs 119 crore in the corresponding quarter previous year.
ACC’s Q2 figures are stable with an overall improvement. However, its volumes were lower with higher blended realizations owing to south exposure. The company’s total income increased by 9 percent at Rs 2,815 crore, as compared to Rs 2,567 crore year-on-year.
In an interview to CNBC-TV18, Mangesh Bhadang, Research Analyst at Quant Capital shares his outlook on the financial performance of the company in the quarter gone by and the road ahead.
Below is the edited transcript of the interview:
Q: Your first thoughts on ACC?
A: The numbers are in-line with consensus in terms of PAT and even volume growth is slightly lower than even what we were expecting by about USD 5.7 million. It has come in lower but that means the realisations have been much better because our revenues estimates are in-line. Not too sure what the EBITDA estimates could be.
Q: We have got the EBITDA which has come in at Rs 379 crore. This is versus our estimate of Rs 349 crore. Can you give us a sense in terms of what that would mean in terms of margin and your estimate?
A: Rs 379 is a decent number.
Q: It is 13.8 percent EBITDA margins.
A: Yes, so they have done about Rs 700 EBITDA per tonne, which is more or less what the market as well as we were expecting. The realisations were up but the cost would have disappointed as it has happened for various other companies also. But overall, decent number, I don’t think the stock should go down from here.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
