ACC Q3 Results Review – Profitability Hit By Cost Pressures: ICICI Securities


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ACC Ltd.’s Q3 CY22 Ebitda of Rs 164 million (down 98% YoY), almost a 20-year low, was drastically below our / consensus estimates.

Total cost/tonne rose by a sharp 7% QoQ and 26% YoY primarily due to higher input prices.

At the same time, blended realisations were down ~3% QoQ (up 3% YoY) resulting in blended Ebitda/tonne declining 98%/96% YoY/QoQ to Rs 23/tonne (our estimate: Rs 458/tonne).

Cement volumes (assuming clinker sales of 0.15 million tonne) were up 4% YoY (down 8% QoQ) at 7 million tonne implying market share loss.

Factoring-in the higher-than-expected cost inflation, we cut our CY22E-CY23E Ebitda by 6-33%.

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