ACC hardens after reporting Q1 results

ACC rose 3.29% to Rs 1,546.05 at 9:35 IST on BSE after the company's consolidated net profit fell 9.05% to Rs 211 crore on 7.76% rise in sales to Rs 3108 crore in Q1 March 2017 over Q1 March 2016.

The result was announced after market hours on Friday, 21 April 2017.

On the BSE, 28,491 shares were traded in the counter so far, compared with average daily volumes of 23,330 shares in the past one quarter. The stock had hit a high of Rs 1,556.95 and a low of Rs 1,511 so far during the day.

The stock had hit a 52-week high of Rs 1,738 on 8 August 2016. The stock had hit a 52-week low of Rs 1,257 on 22 November 2016.

The stock had outperformed the market over the past one month till 21 April 2017, gaining 6% compared with 0.41% drop in the Sensex. The scrip had also outperformed the market in past one quarter, rising 12.82% as against Sensex's 8.62% rise.

The large-cap cement major has equity capital of Rs 187.79 crore. Face value per share is Rs 10.

ACC said that cement volumes rose 3.77% to 6.6 million tonnes in Q1 March 2017 over Q1 March 2016, as the impact of demonetisation declined and benefits were delivered from ongoing customer excellence initiatives and higher sales from the expanded capacity at Jamul and Sindri plant.

Operating earnings before interest, taxes, depreciation and amortization (EBITDA) fell 5.65% to Rs 417 crore in Q1 March 2017 over Q1 March 2016 as cost of petcoke, coal, packing materials and freight hardened. There was also a shortfall in regular availability of fly ash, a part of which was procured over longer leads entailing higher transportation costs.

The profit before tax dropped 19.93% to Rs 261 crore in Q1 March 2017 over Q1 March 2016, impacted by a higher deprecation charge on account of commissioning of Jamul/Sindri project in the second half of 2016.

The company in its outlook said that increased government spending on infrastructure development, housing, roads, railways, irrigation and other schemes as announced in the Union Budget are expected to reinvigorate the construction sector and boost demand for cement and concrete during 2017.

ACC is a manufacturer of cement and concrete and is a unit of LafargeHolcim group. The company has a countrywide network of modern cement and concrete plants, sales offices, dealers and retailers.

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