ACC results: Net profit rises 24% to Rs 450 crore in Jul-Sep, sales up 5%

ACC Ltd on Tuesday reported a 24 per cent year-on-year (YoY) rise in consolidated net profit for July-September quarter at Rs 450 crore despite a steep rise in energy costs.
 
The cement maker's net sales rose 5 per cent YoY to Rs 3,653 crore. The company follows January-December financial year.
 
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 6 per cent YoY to Rs 712 crore, while EBITDA margin expanded by 10 basis points to 19.5 per cent.
 
While cement sales volume rose 1 per cent to 6.57 million tonnes, net selling price increased by 4 per cent YoY to Rs 5,058 per tonne, the Holcim Group company said.

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The company saw a sharp rise in its expenses, with raw material cost rising 13 per cent to Rs 490 per tonne, and power and fuel cost jumping 26 per cent to Rs 1,165 per tonne, it said in an investor presentation. While employee cost rose 7 per cent to Rs 297 per tonne, freight and forwarding cost declined 1 per cent to Rs 1,234 per tonne.
 
"Despite steep increase in fuel costs, our cost efficiency measures under project 'Parvat' have enabled us to maintain robust performance," ACC said in a release.
 
On the outlook, ACC said economic activity is gaining momentum, driven by accelerated progress in vaccination drive and reduction in Covid-19 cases.
 
The government's impetus on infrastructure and housing will augur well for cement demand in the next quarters, and the sector would benefit from increasing demand in various sectors such as housing, commercial, and industrial construction, it added.
 
"I am confident that our relentless focus on execution of cost efficiency and capacity expansion projects will enable us to deliver strong shareholder value," ACC MD and CEO Sridhar Balakrishnan said.
 
Shares of the company closed 2.55 per cent lower at Rs 2,245.50 on the Bombay Stock Exchange (BSE) on Tuesday.

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