Cement major ACC has reported astrong set of numbers for the first quarter of CY21. The company's consolidated profit surged 74.2 percent year-on-year to Rs 563 crore backed by a strong topline and better-than-expected operating performance.
Consolidated revenue during the quarter grew by 22.7 percent to Rs 4,213 crore compared to Rs 3,433 crore in the year-ago period.
"We have demonstrated strong resilience which has been reflected in performance this quarter. We aim to continue driving the four stated strategic priorities: Performance, growth, innovation and sustainability," Managing Director and CEO Sridhar Balakrishnan said.
ACC said cement sales volume increased to 7.97 million tonnes in Q1CY21, registering a 21.5 percent growth compared to 6.56 million tonnes in March quarter last year.
Ready-mix concrete sales volume declined to 0.83 million cubic metres during the quarter, from 0.93 million cubic metres in the corresponding period, the company added.
The company delivered its highest-ever revenue and operating EBIT in this quarter, ACC said. "Cost efficiency project 'Parvat' is on track and has helped in managing some continuing cost headwinds," it said.
At the operating level, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) spiked 46.8 percent to Rs 860 crore and margin expanded 330 bps to 20.4 percent compared to year-ago quarter.
ACC follows January-December as its financial year.
Numbers were ahead of street estimates. While the revenue was in line with expectations. Profit was estimated at Rs 425 crore on revenue of Rs 4,237 crore and EBITDA was expected at Rs 717 crore with margin at 16.9 percent for the quarter ended March 2021, according to the average of analysts polled by CNBC-TV18.
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The company said the operating EBIT jumped 67.1 percent year-on-year to Rs 717 crore and margin climbed 450 bps to 17 percent in Q1CY21 driven by capex-led strong cost actions and higher growth in premium products.
"With the 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," Balakrishnan said.
ACC commissioned a new grinding unit at Sindri in a record time, adding a capacity of 1.4 MTPA.