ACC Ltd Q3 Result | Consolidated profit dips 21% QoQ to Rs 450 crore; revenue declines 4% to Rs 3,749 crore

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ACC, one of the top cement manufacturers in India and a subsidiary of Holcim Group, reported a reduction of 21 percent in the consolidated profit after tax of Rs 450 crore for the quarter ended September 2021 as compared to Rs 569 crore in the previous quarter. On a YoY basis, profit rose 24 percent from Rs 364 crore.

Consolidated revenue came in 4 percent lower at Rs 3,749 crore for the quarter versus Rs 3,885 crore in the June 2021 quarter. On a YoY basis, however, the revenue grew by 6 percent from Rs. 3,537 crore reported last year.

Cement volumes have grown marginally by 1 percent on a YOY basis to 6.57 million tonnes compared to 6.49 million tonnes last year. RMC volumes grew by 48 percent from 0.46 million cubic metres last year to 0.68 million cubic meters in this quarter.

Revenue from cement increased 3.62 percent to Rs 3,495.49 crore, while that from ready-mix concrete jumped 55.2 percent to Rs 305.07 crore, as against Rs 196.57 crore earlier.

Cost of material as a percentage of sales grew by 200 bps to 13.1 percent in this quarter compared to last year. Power and fuel costs increased by 340 bps to 21.6 percent while freight costs came in lower by 130 bps to 23.5 percent in this quarter.

EBITDA margin was flat and improved by 10 bps to 19.5 percent this quarter while EBIT margin grew by 70 bps to 15.4 percent in this quarter.

“ACC has recorded solid performance during the quarter through operational excellence and focus on sustainability while meeting customers’ needs,” said Sridhar Balakrishnan, Managing Director and CEO.

He added that despite a steep increase in fuel costs, the company's cost-efficiency measures under project ‘Parvat’ have enabled it to maintain robust performance.

The company has 17 operational cement plants with an installed capacity of 34.45 million tonnes per annum. It has 79 ready mix concrete plants across India and the capacity utilisation for the nine months ended September 30, 2021, stood at 79 percent.

The company is of the opinion that economic activity is gaining momentum driven by accelerated progress in vaccination drive and reduction in Covid cases. The government impetus on infrastructure and housing will augur well for cement demand in the next quarters and the cement sector would benefit from increasing demand in various sectors such as housing, commercial and industrial construction.