ACC Limited, a member of the LafargeHolcim Group, reported 39% growth in its first quarter net profit to ₹456 crore led by better realisations and operational efficiencies
The rise in profit was reported on an 8% increase in consolidated revenue to ₹4,059 crore despite weak offtake in the quarter due to the slow pace of construction activity. Operating EBITDA for the quarter registered YoY growth of 25% to ₹783 crore.
“ACC made significant progress in its goals in the quarter with strong operating performance including good net sales growth. I am pleased that EBITDA improved significantly on account of better realisations, operational efficiencies and supply chain efficiency improvement. Despite subdued cement demand, our strong customer relationships, loyal channel network and range of innovative products have helped us deliver a robust quarter,” said Neeraj Akhoury, managing director and CEO.
Cost increase on account of higher fuel prices year on year, was partly mitigated by lower cost of raw materials, improvement in operating efficiency and lower fixed cost.
The company’s ready mix concrete business continued to deliver robust sales volume growth of 11% with its focus on value added solutions and strengthened customer network. It also widened its national presence with the addition of eight new plants during the quarter. ACC now has 82 operational ready mix plants in India.
“Our ready mix concrete business grew strongly aided by eight new ready mix concrete plants in this quarter,” said Mr. Akhoury.
“ACC reported strong Q1FY20 numbers which came ahead of consensus estimates on all fronts. Strong revenue growth was led by 7% YoY increase in average cement realisation at ₹5,335/tonne. EBITDA margin came at 18.9% vs estimate of 17.7%, improved by 230 bps YoY. Cement EBITDA/tonne came at ₹1,080/tonne, a substantial increase of 31% YoY,” said Paras Bothra, president equities, Ashika Stock Broking.
