ACC advances on impressive Q3 figures

ACC rose 2.81% to Rs 1,541 after the cement manufacturer announced its Q3 results after market hours yesterday, 15 October 2019.

ACC's consolidated net profit rose 44.7% to Rs 302.53 crore on 3% increase in net sales to Rs 3,464.43 crore in Q3 September 2019 compared with Q3 September 2018.

On a standalone basis, ACC's net profit surged 45.9% to Rs 299.97 crore on 3% rise in net sales to Rs 3,464.43 crore in Q3 September 2019 compared with Q3 September 2018.

Operating EBITDA grew 26% to Rs 557 crore this quarter as against Rs 444 crore in the corresponding previous quarter. Consolidated cement sales volume fell 2% to 6.44 million tonnes in Q3 September 2019 over 6.54 million tonnes in Q3 September 2018. The ready-mix concrete sales volume improved 11% to 0.81 million tonnes in Q3 September 2019 compared with 0.73 in Q3 September 2018.

The cement industry witnessed muted demand during the quarter due to extended monsoon. Input costs of raw materials were lower year-on-year supported by its supply chain efficiency. Fixed costs as well as selling, general & administrative expenses (SG&A) continued to be lower on year-on-year basis.

The company's ready mix concrete business registered a significant growth of 10% in top line supported by higher volumes. Volume of value added solutions (VAS) grew substantially in Q3 September 2019 over Q3 September 2018. Three new plants were added during the quarter, bringing ACC's total number of operational ready mix plants in India to 83.

ACC said it maintains a positive outlook for demand in the coming months. The government's recent steps such as reduction in corporate tax as well as lowering of interest rates are expected to stimulate the economy and drive infrastructure and affordable housing demand.

Neeraj Akhoury, the managing director and CEO of ACC, has said that, "ACC continues to deliver its profitable growth strategy with strong EBITDA and net profit growth. Our new product offerings, particularly in premium segments along with growth in ready mix volumes supported in delivering higher net sales. We continue to deliver significant operational efficiencies which resulted in reduction of our fixed and variable costs. ACC's capacity expansion strategy is under execution in attractive markets. We remain confident that cement demand growth will strengthen in the coming months."

Meanwhile, the S&P BSE Sensex was down 32 points or 0.08% to 38,473.60.

On the BSE, 51,823 shares were traded in the counter so far compared with average daily volumes of 37,186 shares in the past two weeks. The stock hit an intraday high of Rs 1,559.90 and an intraday low of Rs 1,521.30 so far during the day.

The stock hit a 52-week high of Rs 1,768.40 on 28 May 2019. The stock hit a 52-week low of Rs 1,322.20 on 31 October 2018.

ACC is engaged in manufacturing of cement and ready mixed concrete. ACC is executing projects that will add new capacity in the markets of Uttar Pradesh, Madhya Pradesh, Bihar. Jharkhand and West Bengal.

Powered by Capital Market - Live News