Revenue / EBITDA / Adj PAT rose 49%/67%/93% YoY to INR38.8b/INR8.7b/INR5.7b and beat our estimate by 5%/21%/26% (led by higher volumes, better realization, and cost control). Volumes rose 44% YoY to 6.84mt (5% above est) on account of a low base. Blended EBITDA/t rose 19% QoQ (+16% YoY) to INR1,279/t (16% above est). While cement realization improved 5.7% QoQ (+2.1% YoY) to INR5,153/t (in-line), blended realization (including RMC and clinker sales) was up 5.5% QoQ (+3.9% YoY) to INR5,680/t. ACC used the weak demand in Jun-Q to build clinker inventory, which should support volume growth in 2HCY21 despite capacity limitations.
OutlookWe value ACC at 10x June'23 EV/EBITDA (~10% discount to the past five-year average of 11x) to arrive at Target Price of INR2,480; this implies target EV/t of ~USD116 and target P/E of 20x on CY22E. Maintain Buy.
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