ACC

The company posted a very good performance for third quarter ended 30th Sept 2014. It cocked a 1.5% (YoY) rise in sales volume at 5.62 million tones. And it’s total consolidated sales turnover during the quarter was Rs.2742 crore, up 9%. Operating EBITDA rose to Rs.379 crore, up 32%. Profitability during the quarter showed an improvement as a result of our customer excellence programme and better cost management, particularly with regard to distribution costs & optimized sourcing of inputs and improved realizations. Net profit for the quarter came in at Rs.193 crore, up 62%.

Total operating costs rose 6%, led by higher power and fuel costs and higher freight and forwarding expenses. Raw material cost rose 14%. The company’s consolidated net profit for 9M ended 30th Sept posted a net profit at Rs.836 crore compared to Rs.1095 crore it had posted for 12M ended 31st Dec 2013. In the coming months, ACC is sure to benefit from the expected revival in economic growth and increased infra spend. The company is in the process of expanding its capacity at Jamul, Chhattisgarh to 2.3 mtpa and is likely to begin production by next year. Once this plant goes on stream, the company’s visibility in east India will go up.  9M EPS of Rs.44.50, discounts the current price by over 33 times and annualized EPS of Rs.59 by around 25 times.