Results update: ACC and PVR results declared on 17th October 2022

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ACC, PVR

Here are some of the key takeaways from the results ACC

• ACC recorded net sales of Rs 3,910 crore in Q2FY23 as compared to Rs 3,653 crore in Q2FY22

• EBITDA for the quarter, stood at Rs 16 Crore largely due to a steep rise in fuel cost.

• The company’s standalone loss was Rs 91.1 crore in Q2FY23, compared with a profit of Rs 449 crore in Q2FY22

• Total expense of ACC was at Rs 4,162.13 crore, up 29.88% from Rs 3,204.40 crore in Q2FY.

Management Speak

Commenting on the results, ACC CEO and Whole Time Director Sridhar Balakrishnan said:
“We have had significant cost pressures in the recent past due to steep fuel price rise.
However, the recent cooling off in energy costs will impact us positively in the coming
quarters.” The company has “aggressive growth plans” and its capacity expansion initiative
through new green field projects at Ametha, Madhya Pradesh is progressing well and is
expected to be commissioned by March 2023, he added.

Our view

ACC holds good long-term potential, especially after the takeover by the Adani Group. Though
the results are below expectations, the demand for cement is only expected to increase with
rapid urbanization and infrastructure projects. From the third quarter or fourth quarter onwards,
input costs should see a decline and operational efficiencies will possibly bring in higher
margins in the cement business.

PVR

• PVR reported a bigger-than-expected loss at Rs 71.23 crore in Q2FY23. This is a
decline of 53% from Rs 153.13 crore posted in Q2FY22. However, a comparison may
not be equal as Q2FY22 was impacted by Covid restrictions and the current quarter
was fully open

• PVR’s revenue from operations was up at Rs 686.72 crore in Q2FY23 as against Rs
120.32 crore in Q2FY22

• PVR’s total income was also up at Rs 703.13 crore in Q2FY23, as against Rs 275.21
crore in Q2FY22

• EBITDA for the quarter came at Rs 170 crore, as compared to Rs 86.8 crore for the
corresponding quarter in FY22

Management Speak

Mr. Ajay Bijli, Chairman cum Managing Director, PVR Ltd said. “We remain focused on driving admissions back to our cinemas. India’s love for movies was well demonstrated by the massive success of National Cinema Day: I am confident of full recovery in the business driven by the robust content lineup for this year and the various initiatives that we are implementing to rekindle the cinema-going habit amongst our loyal patrons.

Our View

PVR is currently a weak stock. A lot depends on how the proposed merger with INOX pans out. We have also witnessed a change in audience preferences which did not give a great response to many recent releases from Hollywood and Bollywood. With a wide choice available via OTT platforms, multiplexes are likely to face challenges in drawing audiences in the near future.

ABOUT THE AUTHOR

Ketan Sonalkar (SEBI Rgn No INA000011255)

Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.

Note – This channel is for educational and training purpose only & any stock mentioned here should not be taken as a tip/recommendation/advice

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