Cement maker ACC surpassed analysts' expectations on earnings front Monday as profit on consolidated basis grew by 32.6 percent year-on-year to Rs 326.2 crore despite higher tax expenses. The growth was driven by strong operating income and revenue.
Revenue during the quarter increased 20.5 percent to Rs 3,959 crore compared with Rs 3,286 crore in same quarter last fiscal.
ACC said it delivered strong volume growth amidst challenging market conditions. The speedy ramp up of Jamul integrated project, enabled the company to reap benefits and strengthen its market presence in the Eastern region.
It further said two new brands - ACC Suraksha and ACC HPC, launched in the previous quarter, have been well accepted by customers enriching the company's product portfolio and increasing margins.
Cement sales volume increased 10.1 percent to 6.74 mt from 6.12 mt on year-on-year basis.
Operating profit shot up 37.7 percent to Rs 636.8 crore and margin expanded by 240 basis points to 18.4 percent compared with year-ago quarter despite higher power & fuel and freight & forwarding expenses.
The company follows January-December as its financial year.
Profit was estimated at Rs 282 crore on revenue of Rs 3,255 crore and operating income was expected at Rs 501 crore with margin at 15.4 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.Tax expenses during the quarter nearly doubled to Rs 155.6 crore from Rs 83 crore in same quarter last fiscal.