ACC reported revenue growth of 22.6% YoY/3.6% QoQ at INR 42,920 Mn. Cement sales volume saw a growth of 21.6% YoY to 8 MT from 6.6 MT in Q1CY20, mainly driven by robust demand and low base effect. EBITDA for the quarter was up by 46.7% YoY (+50.4% QoQ) to INR 8,602 Mn. EBITDA margin stood at 20%, an improvement of 329 bps YoY (+625 bps QoQ). Expansion in EBITDA margin was led by operational efficiency and cost reduction initiatives. Net Profit saw a quantum jump of 74.2% YoY (+19.1% QoQ), while Net Profit margin for the quarter expanded by 388 bps YoY to 13.1% (+171 bps QoQ).
OutlookAs a result, we raise our target price for ACC from INR 2,100 earlier to INR 2,185, valuing the company at 10.5x FY22E EV/EBITDA, giving an upside potential of 19.7% over CMP. Accordingly, we reiterate our “BUY” rating on the shares of ACC Ltd.
For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
