Business Standard

Firm realisations, cost control boost ACC's performance in June quarter

Valuation of 7.6x its CY21 EV/Ebitda and EV/tonne of $79 appears attractive

Cement industry, cement

Lower prices of inputs such as coal and pet coke led to a fall in fuel and freight expenses, the two biggest cost components

Ujjval Jauhari New Delhi
ACC’s performance in the second quarter ended June 30, 2020 (Q2) bore the brunt of the lockdown as cement volumes declined. ACC’s accounting year is January-December. However, good realisations and cost-control measures lifted its operational performance.

While cement demand was significantly impacted in the peak months of April and May, some recovery was seen in June. Yet, ACC’s sales volumes declined 34 per cent year-on-year (YoY) and 27 per cent sequentially to 4.8 million tonne (mt) in Q2. However, it was in line with estimates of brokerages such as Emkay Global.

Cement realisations held the fort. Aided by production and pricing discipline

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 21 2020 | 5:13 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to