ACC Q4CY21 PAT declines 40.5% YoY on higher fuel cost, exceptional expensesACC - 2244 Change: 6.90 (0.31 %)
News: ACC reported muted revenue growth of 2% YoY to Rs.4225.8 crore on lower volumes. PAT declined 40.5% YoY to Rs.280.9 crore due to sharp higher fuel expenses and exceptional charge of Rs.54.8 crore pertaining to restructuring.
Views: While fuel cost increasing sharply by 29% YoY, network optimization under MSA with Ambuja helped to contain freight and other cost effectively. We believe the stock price has already factored in the weak Q4CY21 results with price correction of over 10% in the past two months. With demand environment now improving, we expect margins to gradually see an uptick from next quarter onwards.