The cement major's consolidated net profit rose 20.26% to Rs 363.85 crore on 0.26% increase in net sales to Rs 3537.31 crore in Q3 September 2020 over Q3 September 2019.
Consolidated profit before tax (PBT) grew by nearly 22% year-on-year to Rs 540.67 crore in Q3 September 2020 as against Rs 443.49 in Q3 September 2019. Total tax expense increased 25.4% to Rs 176.82 crore in Q3 September 2020 over Q3 September 2019. The result was announced after market hours today, 19 October 2020.
Operating EBITDA increased 20.47% to Rs 671 crore in Q3 September 2020 over Q3 September 2019. Operating EBITDA margin rose by 328 basis points to 19.4% in Q3 September 2020 compared with 16.1% in Q3 September 2019, supported by efficiency and cost reduction.
The company said its focus on premium products has enabled net sales growth of 4% in cement over previous year. Cement sales volumes rose by 0.78% to 6.49 million tonnes in Q3 September 2020 compared with 6.44 million tonnes in Q3 September 2019. The ready-mix concrete sales volume surged 76% to 0.81 million cubic metres in Q3 September 2020 from 0.46 million cubic metres in Q3 September 2019.
ACC said operating cost per ton of cement continues to reduce. The cement maker also said the share of blended cement has gone up to 91% during the quarter vs 88% in the same quarter previous year, reiterating focus on sustainability.
Commenting on company's performance, Sridhar Balakrishnan, MD & CEO said, "Despite Covid-19 headwinds, Indian economy is witnessing early signs of recovery. At ACC, this recovery has been reflected in our Q3 results where our volumes and sales have bounced back to prior year levels. Our efficiency and cost reduction plans have helped drive significant margin expansion during the quarter. We continue to manage working capital effectively resulting in healthy cash flow delivery. Our focus continues to remain on 'Health, Cost and Cash'. We have resumed operations at all locations following mandated safety protocols to ensure health and safety of our employees and the communities in which we operate. With our efficiency programs in place, supported by a team with a high level of preparedness, I am confident of ACC delivering a strong performance going forward."
In its outlook, ACC said: "The company believes that our country's economic recovery is underway and the economy will bounce back strongly in the next few quarters. The Government's thrust on infrastructure development, increased spending through measures aimed at reviving the rural economy and a sharper focus on the affordable housing segment is expected to drive strong resurgence of cement demand and bring growth opportunities for the cement sector going forward."
ACC, a member of the LafargeHolcim Group, is one of India's leading producers of cement and ready mixed concrete. It has ~6500 employees, 17 cement manufacturing sites, 82 concrete plants and a nationwide network of over 50,000 retail outlets to serve its customers.
Shares of ACC closed 0.09% higher at Rs 1562.8 on BSE.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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