ACC gains after Q4 results

ACC rose 1.07% to Rs 1,018.80 on BSE after consolidated net profit rose 9.74% to Rs 275.71 crore on 0.03% rise in total income to Rs 2,834.99 crore in Q4 December 2013 over Q4 December 2012.

The result was announced at the fag end of the trading session today, 6 February 2014.

Meanwhile, the BSE Sensex rose 49.71 points, or 0.25%, to 20,310.74.

On BSE, 1.04 lakh shares were traded in the counter, compared with an average volume of 20,729 shares in the past one quarter.

The stock hit a high of Rs 1,027 and a low of Rs 986.35 so far during the day. The stock hit a 52-week high of Rs 1,355 on 7 February 2013. The stock hit a 52-week low of Rs 912.05 on 28 August 2013.

The stock had underperformed the market over the past one month till 5 February 2014, falling 7.40% compared with the Sensex's 2.83% fall. The scrip had underperformed the market in past one quarter, falling 11.49% as against Sensex's 3.40% decline.

The large-cap company has an equity capital of Rs 187.75 crore. Face value per share is Rs 10.

On a consolidated basis, ACC's net profit rose 3.34% to Rs 1094.67 crore on 2% decline in total income to Rs 11388.55 crore in the year ended December 2013 over the year ended December 2012.

Net profit of Rs 1094.67 crore in the year ended December 2013 (which includes a tax write back of Rs 216.74 crore) is not comparable to the net profit of Rs 1059.28 crore in the year ended December 2012 (which included an additional depreciation charge of Rs 335.38 crore due to change in method of depreciation), ACC said in a statement.

Operating EBITDA (earnings before interest taxes depreciation and amortization) fell 25.80% to Rs 1629.97 crore in the year ended December 2013 over the year ended December 2012.

Cement sales volume fell marginally by 0.75% to 23.93 million tonnes in the year ended December 2013 compared with 24.11 million tonnes in the year ended December 2012.

The economic environment in the country was sluggish, thus impacting the demand for cement and concrete. As a result the company's cement volumes remained almost flat, ACC said in a statement.

The company said that though sales realizations were lower, it was able to offset inflationary pressures in the cost of major inputs by managing its operating costs as a result of the continuing programme to pursue cost leadership and enhance customer value through improvements in manufacturing, sales, logistics and procurement processes.

In its outlook, ACC said that based on current demand indications, the company does not foresee any significant improvement in the cement market in the near term. However, the company continues to drive its cost leadership programme along with plans to enhance realizations by intensifying its customer excellence efforts, the company said.

ACC said its first ever waste heat recovery boiler plant, with an output of ~ 7 megawatts, was commissioned at the Gagal cement plant in Himachal Pradesh. This marks an important milestone in the company's sustainable development journey, it said.

The on-going Jamul project in Chattisgarh is making good progress. The project has presently reached the halfway stage and will be completed in a phased manner by mid 2015. During the year work on the Sindri site in Jharkhand also commenced and is moving ahead as per schedule, ACC said.

Mr Paul Hugentobler, Deputy Chairman, who has been closely associated with the company for over eight years, is retiring from the services of Holcim and also from the board of ACC. Another senior Director of the company, Mr S M Palia, who has been associated with the company for twelve years, is also retiring from the Board on completion of his term. The board has placed on record their long association, valuable guidance and outstanding contribution. The board has appointed Mr Vijay Kumar Sharma, Managing Director of Life Insurance Corporation of India, as an independent Director.

ACC manufactures cement and ready mixed concrete.

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