Last Updated : Oct 20, 2020 02:27 PM IST | Source: Moneycontrol.com

ACC Q3 is a hit; 20% YoY jump in profit, beats market estimates on most fronts

The cement maker has reported a consolidated net profit of Rs 363.85 crore for the September quarter, up 20.26 percent from Rs 302.56 crore in the year-ago period.

Cement manufacturer ACC on October 19 posted a consolidated net profit of Rs 363.85 crore, up 20.26 percent year-on-year (YoY) for the September quarter.

The company had reported a profit of Rs 302.56 crore in the corresponding quarter of the previous financial year. The number beat market estimates as a CNBC-TV18 poll had estimated profit to the tune of Rs 310 crore.

The company, which follows January-December financial year, posted Q3 revenue at Rs 3,537.3 crore against Rs 3,528.31 crore YoY.

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Revenue was also higher than the CNBC-TV18 poll of Rs 3,450 crore.

EBITDA grew 20.5 percent to Rs 671.4 crore against Rs 557.1 crore YoY while EBITDA margin came at 19 percent against 15.8 percent YoY.

A CNBC-TV18 poll had expected ACC's EBITDA at Rs 590 crore and EBITDA margin at 17.1 percent.

The company said efficiency and cost-reduction drove EBITDA margin expansion by 328 basis points and focus on premium products enabled net sales growth of 4 percent in cement over the previous year.

"Despite COVID-19 headwinds, the Indian economy is witnessing early signs of recovery. At ACC, this recovery has been reflected in our Q3 results, where our volumes and sales have bounced back to prior-year levels," ACC Managing Director & CEO Sridhar Balakrishnan said.

"Our efficiency and cost-reduction plans have helped drive significant margin expansion during the quarter. We continue to manage working capital effectively resulting in healthy cash flow delivery," he said.

Balakrishnan added that the company's focus continues to remain on "health, cost and cash".

"We have resumed operations at all locations following mandated safety protocols to ensure the health and safety of our employees and the communities in which we operate. With our efficiency programmes in place, supported by a team with a high level of preparedness, I am confident of ACC delivering a strong performance going forward," said Balakrishnan.

The government's thrust on infrastructure development, increased spending through measures aimed at reviving the rural economy and a sharper focus on the affordable housing segment was expected to drive up cement demand, ACC said.
First Published on Oct 19, 2020 04:41 pm

tags #ACC #Results

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