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ACC Q2CY19 Earnings: Margins likely to improve despite lower volumes

Updated : July 18, 2019 08:29 AM IST

One of India's largest cement producers ACC Limited is set to report its Q2CY19 results today. The stock has risen 9 percent in the last few weeks.

In terms of the topline, the analysts are expecting more or less flattish number or a rise of about 1 to 1.5 percent.

Here are the key expectations:
  • Volumes are expected to be at around 7 million tonnes, down about 3.5 percent approximately.
  • Realisations will jump up. ACC has a pan-India presence but its presence in central, eastern, as well as south India,  is what is going to help the realisations move higher.
  • It is constrained for capacity in the next couple of years but it is moving from around 33 million tonnes to around 39 million tonnes. That will help volumes in the times to come. For the time being, the company is functioning at almost optimum capacity utilisation levels.
  • Margins are likely to expand by around 150 basis points (bps).
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