- 26 Apr 2024
- ICICI Securities
Strong operational performance on healthy volume growth with lower costs
ACC - 2490 Change: -41.90 (-1.66 %)News: Revenue increased by 12.7% YoY (+9.8% QoQ) to Rs 5398.1 crores, mainly led by cement sales volume growth of 22.4% YoY (+16.3%) to 10.4 mtpa. However, net realization was down by 7.9% YoY (-5.7% QoQ) which partially negated the impact of strong volume growth. EBITDA grew by 79.5% YoY to Rs 837.1 crores as EBITDA/ton has improved sharply on YoY basis to Rs 805/ton (vs Rs 549/ton YoY) led by lower operational cost and positive operating leverage. Sequentially, EBITDA/ton is down 20.3% on lower realization & higher RM cost. PAT was up significantly (+216.4% YoY) to Rs 748.5 crores. For FY24, revenue is up 12.2% YoY to Rs 19952.2 crores (mainly led by 20.3% volume growth) with EBITDA/ton stood at Rs 830/ton (vs Rs 498/ton in FY23).
Views: Operational performance was better than expectations, primarily on account of better sales volumes & lower cost. Volume growth at 22.4% YoY with 14% YoY decline in total cost/ton were the key positive surprises. Going forward, we expect company’s volume growth to remain healthy over FY25-26E, led by ramp-up of recent capacity additions in central region, upcoming expansion of 4 million tonnes (at Jharkhand and UP), pick-up in demand along with synergy benefits from parent company’s units. Moreover, company would benefit substantially from strong focus on operational efficiencies (led by increasing renewable power share, cost optimisation on logistical & raw material front), benign fuel prices and positive operating leverage.
Impact: Positive