ACC, one of the leading cement makers Q1CY21 Revenue / EBITDA increased by 23% / 47% YoY. Operationally, volume increased by 22% YoY and is led by volume transfer from Ambuja, Sindri commissioning and lower base of last year. Opex/t was down 8% QoQ as Company has benefited from lower cost inventory of raw material, operating leverage benefit from higher volume. This led EBITDA/t to increase to Rs 1074/t vs Rs 908/t QoQ, Rs893/t YoY. ACC reported PAT of Rs 5.6 billion up 74% YoY and 43% QoQ.

Commenting on the result review, IDBI Capital said, "ACC's Q1CY21 EBITDA is 14% higher than our estimate. Beat in the number is led by volume and lower costs. Volume in the quarter has increased by 22% YoY and opex/t is down Rs 350/t QoQ. Though realization was down 1% QoQ but EBITDA/t was up 18% QoQ and was supported by higher volume and lower raw material cost, other expenses.

ACC's has re-iterated greenfield expansion of 3.7mtpa Ametha (MP) plant in Q2CY22, this will increase its capacity by 10%. We have factored better volume and lower costs in CY21/22, this has resulted in higher EBITDA by 5%/10% respectively. Accordingly, our TP is revised to Rs 2,143 (earlier Rs 1,875). Maintain ACCUMULATE rating."

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