The country’s leading cement manufacturer – ACC – on Monday reported net profit of Rs 563 crore in quarter ended March 2021, that marked an increase of 74 per cent from profit of Rs 323 crore during the same quarter last year. Its revenue from sales rose 23 per cent to Rs 4,213 crore against Rs 3,433 crore in the year ago period.
During the quarter ACC registered sales volume of 6.97 million tonnes compared with 6.56 million tonnes in the March quarter of 2020.
The company’s operating profit or earnings before interest, tax, depreciation and amortization (EBITDA) jumped 47 per cent to Rs 860 crore and operating profit margin or EBITDA margin improved by 330 basis points to 20.4 per cent from 17.1 per cent in the year ago period.
“The company believes that the government is taking all possible steps to intensify the vaccination program and control the spread of Covid. With government’s increased pending and its strong focus on infrastructure development, we maintain a cautious yet positive outlook for overall cement demand in the coming months,” ACC said while giving outlook demand outlook for the cement sector.
During the quarter, ACC commissioned a large new grinding unit at Sindri Industrial Township in Dhanbad district of Jharkhand, adding a capacity of 1.4 million tonnes per annum.
“We have demonstrated strong resilience which has been reflected in our performance this quarter. We aim to continue driving the four stated strategic priorities: performance, growth, innovation and sustainability,” said Sridhar Balakrishnan, Managing Director and CEO.
“With the government’s increased spending and its strong focus on infrastructure development, we maintain a cautious yet positive outlook for overall cement demand in the coming months,” Mr Balakrishnan added.
ACC shares ended 0.26 per cent lower at Rs 1,876 ahead of the earnings announcement.