Tag: ACC

ACC Q4 results: Cement maker’s profit beats estimates by over 65%, revenue at ₹5,398 cr in March quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Adani group cement maker ACC saw its net profit jump to ₹748.5 crore for the January to March 2024 quarter, beating CNBC-TV18 poll expectation of ₹451 crore by 66%, the firm’s financial statements showed on April 25.

The firm’s revenue of ₹5,398 crore for the quarter under review also came in higher than at the poll projection of Rs 5,179 crore.

Meanwhile, the ACC Board has also recommended a dividend of ₹7.50 per equity share of face value of ₹10 each fully paid-up for the financial year 2023-24, subject to approval of shareholders of the company.

More details to be added shortly.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cement sector may report healthy volumes amid price dip

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cement demand remained strong in the January to March quarter (Q4FY24) amid a decline in prices.

However, the effect of lower prices was offset by favorable input costs.

Breaking down the demand trends:

The demand in January was weak due to weather conditions and pollution-related restrictions.

But the growth rebounded in February, while March emerged as the strongest month.

Volume growth is expected to recover in the fourth quarter, driven by heavy discounting from companies and increased construction activity towards the year’s end.

Analysts expect the demand at 8-9% in Q4, a big improvement on a sequential basis. For the year, the derived volume growth for the industry is likely to be around 9%.

On a regional basis, the Southern market underperformed, while the West as well as Central India were the best-performing regions.

Pricing trends in the fourth quarter:

Cement prices have steadily declined over the past five months following the increases in September and October 2023.

Therefore, the realisations in the fourth quarter are expected to decline by around 5% sequentially.

Despite it being a seasonally strong quarter, cement prices were affected by fierce competition among major companies aiming to increase their market share.

The most significant quarterly price drop was observed in East India, at roughly 8%, with other regions experiencing declines between 3-5%.

In March, spot prices for international coal and pet coke returned to December 2023 levels. Yet they remain 5-14% lower than the averages seen in the third and second quarters.

Also Read | UltraTech Cement gets ₹7.92 crore GST demand from Karnataka authority

The operating leverage and stable to decreasing variable costs on a quarter-over-quarter (QoQ) basis are expected to keep overall costs in check, with a projected decline of 4-6% year-over-year (YoY) and sequentially.

Brokerage firm Jefferies forecasts that the stocks it covers will experience an earnings before interest, taxes, depreciation, and amortisation (EBITDA) per tonne reduction of approximately ₹110 on a sequential basis.

However, EBITDA per tonne is anticipated to increase by about ₹125 on a YoY basis.

Most companies are expected to see EBITDA per tonne growth, with ACC particularly well-positioned due to easing costs, volume growth from recent capacity additions, and relatively favorable valuations compared to its peers. This growth is also partly attributed to the low base effect from the previous year.

Among the larger peers, Jefferies expects the highest growth for Ambuja Cement at the consolidated level over last year, while UltraTech and Shree Cement are expected to grow by around 18 to 27% in terms of EBITDA.

In midcaps, Dalmia could potentially underperform with sub-10% growth, while JK Cement, and Birla Corp, could outperform with nearly 50% EBITDA growth.

What next?

Given the ongoing general election, a decrease in demand is possible. However, it’s crucial to monitor the extent of price increases, their market acceptance, and the expected recovery in demand later in the financial year (April to March 2024-25).

For more details, watch the accompanying video

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Adani Group Stocks: All 10 entities trade with losses; Shed ₹1.26 lakh crore in market cap so far

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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All ten Adani Group stocks, from Ports, Enterprises to Total Gas and Adani Wilmar, and Cement majors ACC & Ambuja are trading with losses between 5% to 10% on Wednesday.

Adani Ports and Adani Enterprises feature among the top five losers on the Nifty 50 index. Both the stocks are trading with losses of over 8% each

Other stocks like Adani Total Gas, Adani Green Energy, Adani Wilmar, ACC, Ambuja Cements are also trading with significant losses in mid-week trading.

With today’s drop, all Adani Group stocks have cumulatively lost ₹1.26 lakh crore in market capitalisation so far. However, that figure is 7.9% of the group’s overall market cap of nearly ₹15.85 lakh crore as of closing on Tuesday.

Shares of Adani Enterprises are down for the seventh day in a row, while those of Adani Ports have shed over 10% in the last two trading sessions.

This is also the biggest single day drop that shares of Adani Green Energy have witnessed in 2024 so far.

Most other Adani Group stocks are down for the second day in a row.

Adani Group stocks are also declining in-line with the pain in the broader markets on Wednesday where the Nifty Midcap and Nifty Smallcap indices are down over 4% each. Both the broader market indices are down for the third day in a row.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ACC Q3 Results: Stock jumps 11% after strong beat on volumes, margin

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ACC shares rallied 11% on January 25 after the cement maker reported solid financial results for the October to December 2023 quarter. The company’s profit jumped to ₹527.5 crore for the third quarter of the fiscal from ₹110.4 crore in the corresponding quarter of the previous year.

Its revenue rose 8.4% year-on-year to ₹4,918.3 crore, compared to ₹4,536.9 crore in the December ended quarter of the previous fiscal. This came against the backdrop of 17% year-on-year growth in cement and clinker sales volumes.

The EBITDA, or earnings before interest, taxes, depreciation, and amortisation increased manifold to ₹903.2 crore from ₹378.5 crore in the year ago period.

ACC Cement’s margin expanded to 18.4% for the third quarter of the fiscal as against 8.3% in the same period last year.

ACC’s power and fuel costs dropped 10%, leading to a 1.5% slip in total expenses. “Opportunity buy of low-cost petcoke will help to further optimise fuel costs in the coming quarters,” the company said in a statement.

Price hikes and sustained infrastructure demand helped larger rival UltraTech Cement post third-quarter profit and revenue above estimates last week.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ACC acquires remaining 55% stake in Asian Concretes and Cements for ₹775 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ACC Ltd, a subsidiary of Ambuja Cements Ltd, dropped nearly 2% on Monday after it successfully acquired the remaining 55% stake in Asian Concretes and Cements Private Ltd (ACCPL) from its current promoter for ₹775 crore. The company has now secured full ownership of ACCPL with this acquisition.

Before this, ACC was holding a 45% stake in ACCPL, the cement firm said in a filing to the stock exchanges.

With this acquisition, ACC’s cement capacity will increase to 38.55 MTPA, and together with its parent company Ambuja, the cement capacity will increase to 76.10 MPTA.

ACCPL possesses a cement capacity of 1.3 MTPA in Nalagarh, Himachal Pradesh, and its subsidiary, Asian Fine Cements Pvt Limited, has a cement capacity of 1.5 MTPA in Rajpura, Punjab.

The company said that the acquisition is fully funded through internal accruals. ACCPL has cash and cash equivalent of ₹35 crore.

This acquisition positions ACC and its parent company, Ambuja, to strengthen their market leadership in the profitable North India market.

“This strategic move enhances ACC’s cement capacity and progress on the overall target of 140 MTPA capacity of Adani’s Cement Business by 2028. While ACC has an existing tolling arrangement with the Nalagarh unit, the Rajpura plant’s additional 1.5 MTPA capacity will strategically cater to a vast customer base across three states– Himachal Pradesh,

Haryana, and Punjab, ” Ajay Kapur, WTD and CEO, ACC Ltd, said.

The significant clinker reserves held by ACC and Ambuja Cements ensure support for the Rajpura plant, including future expansions. This acquisition strengthens Ambuja and ACC’s market leadership positions, contributing to the Adani Group’s total cement capacity of 77.40 MTPA.

With ongoing and planned CAPEX investments, the Adani Group aims to reach a cement capacity of 106 MTPA by FY 2026.

Shares of ACC were trading 1.35% lower at ₹2,345.2 apiece on BSE at 10:30AM.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ACC Q2 results: Numbers below Street expectations even as revenue and margin improve

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Adani Group subsidiary ACC’s revenue for the July to September 2023 quarter rose over 11% year-on-year to ₹4,435 crore, the company financial results released on October 26 show. This, however, is slightly lower than the CNBC-TV18 poll estimate of ₹4,549 crore.

The cement maker has reported a net profit of ₹384 crore for the quarter under review, marginally short of the estimate of ₹389 crore. In the corresponding quarter of the previous financial year, the firm had witnessed a loss ₹87 crore.

The improvement in profit is added by ACC’s other income which increased by over 200% annually to ₹210 crore.

The volume that ACC recorded in the September quarter is awaited. Though the earnings numbers’ were a miss on all fronts including profit, revenue, margin as well as EBITDA or earnings before interest, taxes, depreciation, and amortisation, the firm has seen improvement across all parameters.

ACC’s margin for the second quarter of the fiscal has improved by 1200 basis points to 12.4% as compared to 0.4% in the same quarter last year. This comes against the backdrop of a decline in costs.

The company’s employee costs during the quarter under review slipped 8% year-on-year to ₹195 crore. While power and fuel costs declined 33% YoY to ₹887 crore, freight and other expenses were down 4% and 8% each at ₹948 crore and ₹561 crore.

As per the company’s exchange filing, during the quarter, it commenced commercial production of clinker with a capacity of 3.3 million tonne per annum at its integrated plant in Madhya Pradesh. Clinker and cement sales volume rose by 17.3 % YoY at 8.1 million tonne, the firm said.

“Kiln fuel cost (during the quarter) reduced by 42%, driven by fuel mix optimisation and higher Alternate fuel consumptions,” the firm said.

ACC also noted that its Waste Heat Recovery System at Kymore and Jamul (22.4 MW) became fully operational during the quarter. In addition, 16.3 MW at Ametha is expected to commission by the third quarter of 2023-24, it said, adding that the share of WHRS in total power consumption will increase to 9% by the end of FY24 as against 2.9% last quarter.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ACC Q2 Results Preview | Net profit may jump to ₹389 crore on strong margins

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Adani Group subsidiary ACC Ltd is set to unveil its financial results for the second quarter of the 2023-24 fiscal on October 26, according to a stock exchange filing.

The company is expected to report revenue from operations of ₹4,549 crore, marking a robust 14.1% increase from the previous year’s Q2 figures of ₹3,987 crore.

ACC’s operating profit is set to exhibit a growth of 4,030%, reaching ₹669 crore, a substantial improvement from the Q2 FY23 figure of ₹16.20 crore. Notably, the company’s operating margins are expected to substantially improve, standing at 14.7% in Q2 FY24, compared to a mere 0.4% in the same quarter of the previous year.

The company’s Profit After Tax (PAT) is anticipated to experience a remarkable turnaround, with a positive growth of Rs 389 crore, in stark contrast to the previous year’s loss of Rs 87 crore.

Also Read: Axis Bank Q2 Results: Profit rises 10% YoY, beats estimates; NII up 19%

In the current quarter, factors at play include expectations of realizations remaining flat or experiencing a 4%-5% year-on-year decrease. However, margin growth is anticipated to be substantial, primarily due to a low base in the previous year. Notably, ACC has experienced good volume growth, with a 19% year-on-year increase, reaching 8.15 million tonnes compared to 6.85 million tonnes.

Margin growth is further supported by the company’s operating leverage, contributing to its year-on-year margin improvement. Enhanced operational efficiency, likely achieved through synergy within the Adani Group, is another factor driving margin growth. Additionally, a moderation in fuel costs is expected to have a positive impact on ACC’s margins.

Key aspects to watch for in ACC Ltd’s Q2 FY24 report include updates on ongoing expansion projects and their progress, insights into the company’s cost management strategies to maintain profitability, indications of a potential revival in demand for ACC’s products, and any remarks or updates regarding mergers or partnerships within the company.

The company’s pan-India presence has allowed it to establish a widespread footprint, reaching consumers across the country. Additionally, ACC has efficiently utilised its production capacity, resulting in high capacity utilisation.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ACC begins commercial production of clinker at Madhya Pradesh plant

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cement producer ACC on Thursday said it has commenced commercial production of clinker at Ametha cement plant in Madhya Pradesh.

The plant has a clinker capacity of 3.3 million tonnes per annum (MTPA) and a cement capacity of 1 MTPA, the company said in a filing to the stock exchanges.

This greenfield integrated project will aid in the lowest-cost production of clinker and cement, which will boost the company’s overall portfolio to 37 MTPA and help in the overall improvement in profitability as well as market share of the company.

The cement plant’s strategic location offers a logistical advantage, which will intensify the company’s ability to cater to critical markets efficiently.

“This milestone harmoniously aligns with our growth strategy for the cement business, enabling us to meet evolving market demands while upholding our unwavering standards of quality, ” Ajay Kapur, CEO of ACC Ltd, said.

The plant is an ESG-compliant one and will demonstrate ACC’s commitment to environmental responsibility with 16.3 MW of waste heater recovery (WHRS) capacity and up to 15 percent of alternative fuel and raw material (AFR) potential.

ACC, which is one of the leading producers of cement and ready-mix concrete in the country, has 17 cement manufacturing sites, over 88 concrete plants, and a nationwide network of channel partners to serve its customers.

In the June quarter, the cement major posted a 105 percent year-on-year (YoY) jump in net profit at Rs 466.1 crore. Total revenue surged by 16.4 percent YoY to Rs 5,201.1 crore during the first quarter ended June 2023.

At 11:30 AM, shares of ACC Ltd were trading 0.45 percent lower at Rs 2,053.60 apiece on BSE.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US-based GQG Partners buy IDFC First Bank, HNI interest in Latent View: Dealing Room Check

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After falling as much as 5 percent in early trading, shares of IDFC First Bank recovered to end little changed on Friday.

4.5 percent of the lender’s total equity had exchanged hands in a large transaction, as per data available on the exchanges.

According to bulk deals data on BSE, US-based boutique investment firm, GQG Partners is the buyer in this transaction.

New Series Starts On A High

Benchmark indices began the September series on a strong note, with the Nifty 50 posting its best single-day gain since June 30.

The Nifty 50 also prevented a sixth straight weekly drop, which would have been the worst weekly losing streak in three years.

PSU stocks were back in focus with the PSE index rallying 2.6 percent. Metal stocks rallied courtesy the China data and some fresh buying interest as well.

Besides IDFC First Bank, these stocks made it to the dealing room chatter:

Latent View Analytics: India’s most subscribed IPO ended over 7 percent higher on Friday, posting its third straight day of gains. Dealers said that the stock gained on strong buy flows on the HNI desk and that an influential HNI was an active buyer in the stock. The street is also anticipating a corporate development to take place in the stock soon, according to the dealers.

EIH: Shares have now gained for four days in a row, ending nearly 9 percent higher on Friday. Dealers say that foreign investors were buyers in the stock and that large delivery volumes are likely in the stock today.

ACC: Shares of the cement manufacturer are consolidating off late and was also deleted from the MSCI index on Thursday. Dealers suggest that a leading domestic mutual fund is a contra buyer in the stock.a

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India to attract $1 bn inflows as MSCI Global Standard Index inclusions to be effective from tomorrow

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In August, MSCI, one of the leading global index providers, announced a list of stocks to be added to its MSCI Global Standard index. These changes are set to take effect in the upcoming (August 31) trading session, bringing with them a wave of anticipation and excitement for the Indian stock market. This inclusion marks a substantial net inflow event for India, with nearly $1 billion of investments expected to pour into the country during the next trading session.

Several prominent Indian stocks are poised to be greatly influenced by this move. Here’s a glimpse of the anticipated impacts on some key players:

Astral: The stock is expected to see potential inflows of approximately $176 million.

Cummins India: A significant inflow of around $178 million is projected for the stock.

Ashok Leyland: With expected inflows of $203 million, Ashok Leyland is another stock which should be on the radar of investors.

IDFC First Bank: The bank’s stock is also likely to experience inflow of $211 million.

Other noteworthy stocks that are expected to see increased inflows include HDFC AMC, PFC, REC, and Supreme Industries.

While many stocks are set to benefit from their inclusion in the MSCI Global Standard index, ACC faces a different fate. ACC is slated to be removed from the index, potentially leading to an outflow of $98 million.

The impact of MSCI’s review extends beyond the Global Standard index. The MSCI India Domestic Smallcap Index is also in for some changes. This particular review is expected to bring about 41 new inclusions and removal of 2 stocks.

Interestingly, MSCI has chosen not to make any changes to the Adani group stocks in this review. Instead, they have deferred these changes to the next review.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow