The brokerage mentioned that the company’s cement business reported an EBIT loss of Rs 1.4 billion as against Rs 5.5 billion during the same period last year. The cement company has been witnessing cost-side pressure, said the brokerage.
“Raw material plus power and fuel cost/tonne rose 47% YoY owing to a sharp increase in input prices.Freight cost/te was up 10% YoY despite flat diesel prices YoY, which reverses the efficiencies generated through project Parvat in the past few quarters. Other expenses/tonne rose 7% YoY and 12% QoQ. Recurring PAT was down 116% YoY and PAT loss was at Rs71.1crore,” added the brokerage.
Nonetheless, the cement major’s termination of royalty payment agreement with Holcim is seen to benefit the former in the range of Rs55-60/tonne from the coming quarters, said the brokerage.
The other area of concern, as seen by the brokerage for ACC, is that the commissioning of the Ametha grinding unit will be delayed by a quarter. “We expect the 2.2mtpa grinding unit at Salai Banwa, Uttar Pradesh, to go on-stream in CY23.
has partially commissioned WHRS units at Jamul (10MW) and Kymore (12.4MW) plants in Q3CY22 while the recently approved WHRS units in Wadi and Chanda are on track for commissioning. ACC aims to achieve a WHRS capacity of 75MW in the near term,” added the brokerage firm.
Further, the key risks flagged by the brokerage are lower demand or prices and continued cost escalation.
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