FSA_ACC Ltd

8/6/2019 FSA_ACC Ltd

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FINANCIALFINANCIAL ANALYSIS OF ACC LTDFINANCIALFINANCIAL ANALYSIS OF ACC LTD

Presented By

Shoven Mohapatra

Shradha Rout

Shruti Bagchi

Siddhartha Goutam

Rajesh Agarwal


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AGENDA

Indian Cement Industry

Overview of ACC Ltd

Accounting Policies of ACCFinancial Statement Analysis

Comparison with Industry

Stock Performance

8/12/2011 Praxis Business School, Class of 2012


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Originated in 1914 at Porbandar, Gujarat

The second largest cement industry in the world

Total capacity of approximately 224 MTAccounts for 1.3% of the GDP

Employs around 0.14 million people

Highly fragmented with around 54 players

Expected Growth Rate:11-12%



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15%

13%

13%

8%7%

7%

5%

5%

4%

4%

3%

3%

3%

2%2%

2%2%

1%

1% 1%0%

Market Share of the Major Cement Companies

ACC

Ambuja Cements

UltraTechCement

Samruddhi Cem

India Cements

Shree Cements

Prism Cement

Madras Cements

Birla Corp

Dalmia Bharat

Binani Cement

JK Cement

JK LakshmiCemen

OCL India

Chetinad Cem

HeidelbergCemen

Rain Commoditie


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Overview of ACC Ltd

Founded in the year 1936

Headquartered in the Cement House, Mumbai

14 Factories + 30 Ready Mix Concrete Plants

ICAI award for excellence in Financial Reporting, 2008

Pollution Control Excellence Award to ACC Bargarh, 2010

First cement company to become a super brandTaken over by Swiss cement major Holcim in 2004



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Overview of ACC Ltd

Subsidiaries of ACC ACC Concrete Limited- Ready Mix Concrete, Wholly owned

Bulk Cement Corporation(India) Ltd- 94.65% Equity

Lucky Minmat Ltd- Limestone Company, Wholly owned

National Limestone Company(P) Ltd- Wholly owned

ACC Mineral Resources Ltd- Wholly owned

Net worth of subsidiaries - ` 5868.97 Crores



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Overview of ACC Ltd

Share Holding Pattern as on 31.12.2009


Promoter& promoter group-

Indian , 45.91

Promoter & promoter

group-Foreign , 0.29

Public Shareholding- Institutions

, 32.22

Public Shareholding- Non-Institutions , 21.58


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Accounting Policies of ACC

Financial Statement: Historical cost & Accrual basis

Fixed Assets: Cost of acquisition/construction

Less: Accumulated depreciation/impairment loss

Depreciation: SLM as per Schedule XIV, Companies Act

Investments: Short Term- Lower of cost or Fair value

Long Term- Cost

Inventories: Lower of cost & NRV(Weighted average basis)



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Financial Statement Analysis

Profit & Loss A/C

Balance sheet

Cash flow statement

Operating activities

Investing activities

Financing activities

Ratio analysisACC Analysis.xlsx



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Financial Statement Analysis

Du-Pont Analysis


Return onAsset

Profit MarginRatio

Profit after Tax

Sales

Asset TurnoverRatio

Sales

Average ofTotal Assets

ACC Analysis.xlsx


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Comparison with Industry

Comparison with Industry average & industry leader


RATIOS ACC INDUSTRY AVERAGE INDUSTRY LEADER

Current Ratio 0.7277 1.2121 1.1368

Fixed Asset Turnover Ratio 1.03 1.009 1.0268

Debt Equity Ratio 0.0942 0.2224 0.0256

Return on Capital Employed 36.13% 26.26% 25.63%


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Stock Performance


Share price movement from 02/08/10 to

01/10/10 with comparison to Sensex movement


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Stock Performance


Major Announcements & their effects

DATE ANNOUNCEMENT EFFECT CHANGE

19.08.2010 Maharashtra Cement

Companies hiked

price by ` 20 per 50 kg

Favorable Share prices increase

by ` 40

07.09.2010 Price hike in South

India by ` 25-40 per 50

kg

Favorable Share prices increase

by ` 60

14.09.2010 Price hike a result of

cartelization

Unfavorable Share prices fall by `

30

20.09.2010 Rumor of cartelization

in the cement

industry gains speed

Unfavorable Share prices drop by `

25


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THANK YOU


FSA_ACC Ltd

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