ACC falls and crumbles

about 2 months ago
No Image

ACC posted a good set of numbers for Q3CY18 but because the earnings were much below what analysts had estimated, the market has beaten it down today. The stock price slumped over 8% to Rs.1413.50. Thanks to this “below expectations” numbers of ACC, the entire cement sector stocks are down in the red today.

ACC’s consolidated net profit grew 15% (YoY) at Rs 209 crore on a 10% jump in net sales at Rs.3364 crore.

The market is more disappointed with ACC’s EBITDA/tonne which was at Rs.684 v/s estimates of over Rs770 and this was on account of lower realizations – they were down on account of price pressures in East and West India. Apart from disappointment over lower realisations, marketmen feel that high base and exceptional increase in earnings in Q2 led to disappointment. Analysts expect realisations to remain weak in the coming months but ACCs effort taken on lower costs, operational efficiencies and better regional mix, should help mitigate the impact.

Articles you may also like

Popular Comments

No comment posted for this article.