Cement maker ACC Ltd on Monday reported a 74.2 per cent year-on-year (YoY) increase in its consolidated net profit at Rs 563 crore during January-March quarter of 2021 on over 21 per cent rise in cement sales volume.
The LafargeHolcim Group company's net sales rose 22.7 per cent YoY to Rs 4,213 crore during the quarter ended March. ACC follows January-December financial year.
ACC reported 21.6 per cent increase in cement sales volume at 8 million tonnes during the quarter under review, while ready made concrete sales declined 10.8 per cent to 0.83 million cubic metres. Cement price per tonne rose 6.5 per cent to Rs 4,876 during January-March.
While earnings before interest, tax, depreciation and amortisation (EBITDA) rose 46.8 per cent YoY to Rs 860 crore, EBITDA margin expanded 330 basis points to 20.4 per cent. ACC attributed the margin expansion to higher share of premium products and continuous focus on cost efficiency actions.
The company, which has 17 cement plants with an installed capacity of 34.45 million tonnes per annum, reported capacity utilisation of 90 per cent during the quarter ended March.
"The grinding unit expansion in Sindri was completed in record time and is fully operational. The execution of our greenfield growth project in Ametha and associated grinding units is progressing as per plan. Additionally, our efficiency projects such as waste heat recovery are on track," ACC said in a release.
The Ametha project is scheduled for commissioning by Q2 2022.
Besides the health of its employees, ACC will continue to focus on cost and cash in the upcoming quarters in view of the COVID-19 pandemic. The company's cost efficiency project 'Parvat' is on track and has helped in managing some continuing cost headwinds, it said.
"The company believes that the government is taking all possible steps to intensify the vaccination programme and control the spread of COVID. With government's increased spending and its strong focus on infrastructure development, we maintain a cautious yet positive outlook for overall cement demand in the coming months," ACC MD and CEO Sridhar Balakrishnan said.