ACC posts 32.7% jump in June quarter profit at Rs321.75 crore
Cement maker ACC Ltd on Monday reported a jump in standalone net profit for the quarter ended June, beating analyst estimates.
Net profit rose to Rs321.75 crore, a 32.7% increase from the year-earlier period, on a 20.5% rise in revenue to Rs3,958.6 crore.
The company’s earnings before interest, tax, depreciation and amortization (Ebitda ) margin widened 2.4 percentage points to 18.4%.
The numbers comfortably beat Bloomberg consensus analyst estimates on all parameters.
ACC said cement sales volume rose 10.1% to 6.74 million tonnes (MMT) during the quarter from a year-ago. Readymade concrete sales growth lagged at 5.6%.
Interestingly, the strong sales growth reported by ACC during the quarter seems to be, at least partly, a function of credit sales ahead of the implementation of the goods and services tax (GST) under which cement is in the 28% tax bracket as compared to a tax rate of anywhere between 25% and 30% pre-GST.
This fact can be validated in the half-yearly balance sheet presented by the company (ACC follows a January-December reporting year) which reveals that receivables have jumped by a 72.4% to over Rs924 crore in the last six months.
The company said two of its newly launched brands – Suraksha and HPC – launched during the March quarter have been well accepted and the company’s strong performance during the quarter was a function of improved productivity and operating efficiencies, which mitigated the adverse impact of rising raw material and fuel prices.