India's ACC misses Q1 profit view on weak demand, price cuts

ACC

29/07/2024 12:40

BENGALURU, July 29 (Reuters) -    Indian cement maker ACC  ACC.NS  on Monday posted first-quarter profit
that missed analysts' estimates, hurt by a weak demand and price cuts.
    The Adani Group-owned company said its profit after tax stood at 3.66 billion rupees ($43.7 million) for the
quarter ended June 30, while analysts were expecting a profit of 4.17 billion rupees as per LSEG data.
    For further earnings highlights, click: (full story) 
    
    KEY CONTEXT 
    General elections in India, as well as extreme heat conditions during the April-June quarter restricted
construction activities, impacting sales volumes for cement makers who have been resorting to price cuts to reduce
the impact of competition. 
    The company reported a volume growth of 9%, which was much below the 16.5%-23.5% range of volume growth in the
previous four quarters. 
    India's largest cement maker UltraTech Cement  ULTC.NS  also reported first-quarter profit and revenue below the
estimates due to lower prices and a demand lull.
    Adani-owned cement maker Ambuja Cements  ABUJ.NS  is set to report earnings on Wednesday.

   
          
    PEER COMPARISON
    
                              Valuation (next         Estimates(next 12        Analysts' sentiment
                                 12 months                      months)  
                   RIC        PE      EV/EBIT  Revenue     Profit        Mean      # of      Stock to       Div
                                      DA       growth %    growth %      rating    analysts  price target   yield
                                                                                                            (%)
 ACC                ACC.NS     20.81    11.93     7.21         8.57      BUY             18      0.92           0.29
 Ambuja Cements     ABUJ.NS    45.79    18.77    10.76        30.05      BUY             22      1.02           0.30
 UltraTech Cement   ULTC.NS    42.30    21.03     9.58        19.72      BUY             34      1.00           0.61
 Shree Cement       SHCM.NS    35.92    17.78     8.78        14.19      BUY             16      0.97           0.38
    
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    
    APRIL-JUNE STOCK PERFORMANCE

    
    
        
-- All data from LSEG
-- $1 = 83.6950 Indian rupees 
    
        

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 (Reporting by Anisha Ajith in Bengaluru)
 ((anisha.ajith@thomsonreuters.com;))