Other income increased sharply by 230.6 percent year-on-year to Rs 156.6 crore in quarter ended March 2019.
Pan-India cement company ACC reported a 38.2 percent year-on-year (YoY) growth in first quarter consolidated profit at Rs 346 crore, driven by a tax refund that was partially included in other income.
Profit in quarter ended March 2018 stood at Rs 250.36 crore.
The company said revenue from operations during the quarter grew by 8.1 percent to Rs 3,919.1 crore YoY with cement sales volume growth of 5.6 percent to 7.5 million tonne.
Ready mix concrete business continued to deliver robust growth as volumes of ready-mix concrete grew strongly at 19 percent and volumes of value-added solutions (VAS) also grew significantly in Q1FY19 YoY, the cement major said.
Eight new plants were commissioned in the quarter bringing the total number of ready-mix concrete plants to 80, it added.
ACC follows January-December as its financial year.
Other income increased sharply by 230.6 percent YoY to Rs 156.6 crore in the quarter ended March 2019.
While explaining reason for sharp increase in other income, ACC said during the quarter, receipt of Orders Giving Effect (OGE) to the CIT(A) orders for certain assessment years on disposal of certain appeals sanctioning income tax refunds resulted in interest income and reversal of provision for interest on income tax aggregating Rs 276.66 crore.
The company has made a provision of Rs 177.18 crore against this due to the uncertainty of its ultimate realisability and the net income of Rs 99.48 crore is included in other income, it added.
At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) in Q1 grew by 8 percent to Rs 531.7 crore and the margin remained flat at 13.56 percent against 13.57 percent YoY.
ACC said the prices of fuel and slag rose in the quarter, which was mitigated by market initiatives, sustained cost reduction initiatives viz. material source-mix & fuel mix optimization and productivity improvement measures.Strict controls on third-party spend resulted in lower fixed cost as well as selling general & administrative expenses (SG&A) on YoY basis, it added.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.