Results announced by ACC were largely below analyst estimates. And though the net profit for the quarter ended December 2009 rose 29%, analysts are perturbed by the fall in realisations and Ebitda per tonne of cement produced. According to analysts, realisations during the quarter fell 8.2% over the previous quarter, but rose 3.8% over the same period of the previous year. Aggregate volume was down 0.5%, over the year at 5.47 million tonne, however, volume increased 6.3% on a sequential basis. Ebitda per tonne was pegged at Rs 785, fell 39%, and while lower realisations, down by around Rs 315 a tonne, was one main reason, rise in ?other expenses? by around Rs 240 per tonne, also took a toll on profitability. The ?other expenses? increased due to Rs 39 crore of sales tax exemption write back at its Chaibasa plant in Jharkhand and another Rs 75 crore reportedly on account of consultancy charges. If these one off items in other expenditure are excluded analysts at Alchemy research believe that the Ebitda per tonne for the quarter would have been higher by around Rs 200 per tonne. Going ahead the company would be looking out for the next phase of its expansion. Expansion at Wadi, Karnataka with a 2.7 million tonne grinding unit has been commissioned in the December quarter and its clinker unit and 50 mw power plant is expected to be commissioned by mid of 2010. Similarly, the 3 million tonne unit at Chanda, Maharashtra will be on stream by September 2010. This will take the capacity to 30 million tonne from the current 26 million tonne. At the moment, analysts estimate the company to be valued at an enterprise value per tonne between $100 and $110, quite in line with the replacement cost. Hence, the current share price look justified. It is the perception of the volume growth and the ability of the management to improve its margins from the 22% levels in the December quarter, through price increases, that would make an impact. According to analysts, UP & Bihar, which contributes around 24% of its domestic sales has increased. Prices in eastern UP have gone up by over Rs 60 per bag and prices in Bihar have increased by Rs 25-30 per bag. It is the ability of the management to maintain pricing when costs of key inputs are set to rise would be the key factor.