Cement maker ACC's quarterly profit jumps 38% at Rs 346 crore; revenue up 8%

Cement maker ACC on Tuesday reported higher-than-expected 38.2 percent year-on-year (YoY) growth in its consolidated net profit at Rs 346 crore for the first quarter ended march 31, 2019, helped by rise in other income.

"The company had posted consolidated net profit of Rs 250 crore in the corresponding quarter last year," ACC said in a filing to the Bombay Stock Exchange.

The cement maker, which follows January-December as a fiscal year, has reported a 8.1 per cent rise in its consolidated income at Rs 3,919.1 crore as compared to Rs 3,625 crore in the same period a year ago.

During the January-March quarter, other income increased sharply by 230.6 per cent YoY to Rs 156.6 crore.

The operating profit, EBITDA (earnings before interest, tax, depreciation and amortisation), of the company grew by 8 percent to Rs 532 crore in Q1 versus Rs 492 crore in the year ago period. However, the EBITDA margin remained flat at 13.56 per cent against 13.57 percent in the same quarter last year.

Commenting on Q1 earnings, ACC Managing Director & CEO Neeraj Akhoury said, ''Our three-pronged strategy of customised solutions for consumers, focus on and powering ACC's strong growth trajectory. ACC's brand campaign "Karein Kuch Kamaal" is receiving very positive response across markets and will help us. Build long-term brand equity."

"Our ready mix concrete business has demonstrated consistently strong volume growth quarter after quarter. We are also investing in a pipeline of solutions and products including a portfolio of dry mix products," he added.

Volumes of ready mix concrete grew strongly at 19 per cent and volumes of Value Added Solutions (VAS) also grew significantly in Q1FY19 year on year.

During the March quarter, the company commissioned eight new plants, bringing the total number of ready mix concrete plants to 80.

The prices of fuel and slag rose in the quarter, which were mitigated by market initiatives, sustained cost reduction initiatives such as material source-mix and fuel mix optimisation and productivity improvement measures, it added.

Looking forward, the company expects robust demand from rural sector, citing predictions of a normal monsoon. It also added that the government's continued thrust on infrastructure development as well as Housing-for-All initiatives are expected to invigorate the construction sector and stimulate cement demand.

Meanwhile, ACC shares closed trade at Rs 1657.85, down 0.6 per cent, on the Bombay Stock Exchange on Tuesday.

Edited by Chitranjan Kumar