ACC Share price: Nomura puts stock under spotlight - Here is what investors need to know
During Apr-Sep, cement demand was driven by the strong growth from rural India on the back of higher government spending. ACC’s management indicated that cement demand recovery has further accelerated in Oct-Nov with the pickup in demand from urban and infrastructure segments. While rural demand has normalized from the recent hyper growth phase, pent-up demand from urban areas and infrastructure projects are the key demand drivers now. ACC Management also noted that real estate inventory with large developers is reducing with the declines in prices, stamp duty benefits, etc. and developers are now completing unfinished projects.
ACC had set a target of reducing total costs by 5%. The company undertook several cost-saving projects like renegotiation of warehouse rents, increased direct dispatches from 40% to 60% of sales, and optimized fuel / freight mix: Reuters