ACC Shares Volatile Ahead of FY2023 Q4 Earnings

The cement maker is scheduled to announce its March quarter scorecard on Thursday, April 27, 2023, which is expected to show some pressure on volumes due to the prolonged strike at the Himachal plant.

Brokerage firm Axis Securities expects ACC volumes to decline due to the strike at the Himachal plant for over two months.

However, the brokerage firm expects the cement company’s revenue to be marginally higher on the back of better year-on-year (YoY) realization.

In addition, Axis hopes acc’s Gross margin for the contract due to higher cost YoY. EBITDA margin may be lower YoY but higher Q-o-Q (QoQ). PAT may also be lower due to higher cost.

EPS can be in line with PAT. EBITDA/tonne may be lower on a year-on-year basis. The yield may be higher from year to year. Axis said the cost/tonne could be higher as the cost increases.

Brokerage BOBCAPS reported that Adani Cement had to shut down operations at its plants in Gaggal and Darlaghat (Himachal Pradesh) due to a dispute with truck operators, which had a material impact on volumes, causing ACC to lag the industry’s annual growth rate of 20 per cent. Went. ,

BOBCAPS expects ACC to report a 22.4 per cent year-on-year decline in EBITDA and a 418 bps decline in EBITDA margin.

Brokerage firm ICICI Direct also highlighted that ACC volumes during the quarter could be impacted due to shutdown of plant operations in Himachal Pradesh for about 50 days in Q4 FY2023.

“We expect volumes to decline marginally by 0.5 per cent to 7.7 MT. 5,833/T. Revenue is expected to grow by one per cent year-on-year 4,475 crore,” ICICI Direct said.

“Profitability is expected to be supported by improved fuel cost improvements and improved operating efficiency through group synergies. We expect EBITDA/T to improve sequentially 678/t in Q4FY23E (Q3FY23: 492/T),” ICICI Direct said.

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