BSE Index Analysis, Securties , Standard Experts
ACC : Maintains Margin Despite Cost Pressure......
Reco : Hold
Cmp : 1,247
Target : 1,289
ACC Q1CY12 standalone EBITDA of Rs 6.4 bn (up 12% YoY) was in line with our estimate of Rs 6.3 bn. The company was able to pass on steep cost increases and maintain YoY profitability. Adj. PAT stood at Rs 3.8 bn (up 9% YoY).
Key highlights
Sales volume:
Q4 volumes rose 8% YoY to 6.7 mnt. Avg. realization/ton improved 10% YoY to Rs 4,260.
Cost pressures visible: Overall COP rose 13% YoY to Rs 3,300/ton primarily due to 30% increase in power and fuel costs. EBITDA/ton was at Rs 960 vs. Rs 742 in Q4CY11 and Rs 940 in Q1CY11.
Change in depreciation policy : ACC changed its depreciation policy for its captive power plants from straight line to WDV method retrospectively, leading to one-time extraordinary cost of Rs 3.3 bn. Adjusted for this and the corresponding tax benefit, PAT was at 3.8 bn (up 9% YoY).
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