After reporting subdued volume growth (1.8% CAGR in CY13 17), ACC reported double digit volume growth (up 14.0% YoY) in CY17. Going forward, we expect the company to report volume CAGR of 8.4% in CY17 19E mainly led by macro tailwinds and higher utilisation of expanded capacity. Further, we expect OPM to improve from 12.1% to 14.8% in CY19E mainly led by cost control initiatives like use of alternative fuels, better sales mix and reduction of employees.
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