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Commenting on the performance, Managing Director & CEO Mr. Neeraj Akhoury said in a statement: ACC made significant progress on its goals in the quarter with strong operating performance including good net sales growth. I am pleased that EBITDA improved significantly on account of better realisations, operational efficiencies and supply chain efficiency improvement. Despite subdued cement demand, our strong customer relationships, loyal channel network and range of innovative products have helped us deliver a robust quarter. Our ready mix concrete business grew strongly aided by eight new ready mix concrete plants in this quarter
Consolidated performance for the June Quarter
For quarter ended June 2019, consolidated total income from operation inclined 8% to Rs 4,149.82 crore, due to improvement in cement realization, operational efficiencies and supply chain efficiency improvement. The Companys cement sales volumes was flat at 7.20 million tonnes during the quarter, while cement realisation improved by 7.2% to Rs 5,335 per tonne.
The companys ready mix concrete business continued to deliver robust sales volume growth of 11% with its focus on value added solutions and strengthened customer network. It also widened its national presence with the addition of eight new plants during the quarter. ACC now has 82 operationalready mix plants in India.
The cement segment revenue, contributing 91% of total revenue, gained 7% to Rs 3,841.39 crore. The ready-mix concrete (RMC) segment revenue, contributing 9% of total revenue, grew 14% to Rs 365.82 crore.
The Operating Margin (OPM) was up 260 bps to 18.9%, as lower cost of raw materials, improvement in operating efficiency and lower fixed cost offset higher fuel prices increase. As a result, the operating profit (OP) grew 25% to Rs 738.02 crore.
At segment level, PBIT of cement segment grew 42% to Rs 631.22 crore. The PBIT of RMC segment declined 41% to Rs 16.21 crore. Margins of cement segment increased 410 bps to 16.4% while margin was down by 410 bps to 4.4% for RMC segment.
The other income rose 64% to Rs 53.49 crore. Interest cost fell by 27% to Rs 19.89 crore, while depreciation cost was down 1% to Rs 146.86 crore. Thus, PBT grew by 39% to Rs 669.76 crore. With gain in net Tax outgo by 41% to Rs 216.95 crore, the PAT before MI and Share of profits from Associate rose 39% to Rs 452.81 crore. After accounting profit of Rs 2.87 crore in Share of profits from associates, and NIL outflows in Minority interest, the Net Profit rose 39% to Rs 455.68 crore.
Consolidated performance for H1CY19
For quarter six month ended June 2019, consolidated sales inclined 8% to Rs 8,068.93 crore, due to jump in sales volume and realization. The combined domestic cement sales rose 2.1% to 14.7 MT while realization grew 4.9% to Rs 5,053 per tonne.
The Operating Margin (OPM) grew 140 bps to 16.3%. As a result, the operating profit inclined by 18% at Rs 1,314.72 crore.
The other income grew 163% to Rs 210.09 crore, thus, the PBIDT rose 27% at Rs 1524.81 crore. With fall in interest outgo by 10% to Rs 40.75 crore and drop in depreciation allowance by 1% to Rs 294.43 crore, PBT, as a result, inclined 39% to Rs 1,189.63 crore.
The Tax Expense escalated by 41% to Rs 394.02 crore, as the effective tax rate grew to 33.1% from 32.8% corresponding previous period.
Thus, PAT before MI and Share of profits from Associate by rose by 39% to Rs 795.61 crore. After accounting gain of Rs 6.09 crore in Share of profits from associates and NIL Minority interest, the Net Profit, as a result, inclined 38% to Rs 801.70 crore.
Consolidated performance for CY18
For the fiscal ended December 2018, consolidated sales inclined 11% to Rs 14,801.62 crore, due to jump in sales volume partly offset by decline in realization. The combined domestic cement sales rose 8.4% to 28.40 MT while realization fell 4.7% to Rs 4,826 per tonne.
The Operating Margin (OPM) fell 60 bps to 13.8%. As a result, the operating profit inclined by 7% at Rs 2,048.12 crore.
The other income grew 11% to Rs 142.66 crore, thus, the PBIDT rose 7% at Rs 2,190.78 crore. With fall in interest outgo by 11% to Rs 87.77 crore and drop in depreciation allowance by 6% to Rs 603.22 crore, PBT, as a result, inclined 15% to Rs 1499.79 crore.
The Company has received tax credit of Rs 10.51 crore, thus, PAT before MI and Share of profits from Associate by rose by 65% to Rs 1,510.30 crore. After accounting gain of Rs 10.32 crore in Share of profits from associates and NIL Minority interest, the Net Profit, as a result, inclined 64% to Rs 1,520.62 crore.
Recent developments such as a reduction in interest rates, start of a normal monsoon and Governments concerted efforts to stimulate investment across several sectors are likely to have a favourable impact on improving the overall economic environment in the country. Higher annual budget allocation for infrastructure, affordable housing, upgradation of roads and the Governments strong focus on connectivity will drive cement demand and aid growth going forward.
The scrip closed at Rs 1,567.20 on 18 July 2019 on the BSE.
ACC: Consolidated Results
|1906 (3)||1806 (3)||Var %||1906 (6)||1806 (6)||Var %||1812 (12)||1712 (12)||Var %|
|Income from Operations||4149.82||3848.25||8||8068.93||7472.84||8||14801.62||13285.13||11|
|PBT before EO||669.76||481.17||39||1189.63||853.96||39||1499.79||1299.14||15|
|PBT after EO||669.76||481.17||39||1189.63||853.96||39||1499.79||1299.14||15|
|PAT before minority interest||452.81||326.77||39||795.61||574.21||39||1510.30||913.59||65|
|Share in Profit of Associates||2.87||1.97||46||6.09||4.92||24||10.32||10.92||-5|
|* EPS is on current equity capital of Rs 187.99 crore, Face value of Rs 10|
# EPS Not Calculated As It Is A Seasonal Business
Var % exceeding 999 is truncated to 999
LP: Loss to Profit PL: Profit to Loss
EO: Extraordinary items
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate Databases
ACC: Consolidated Segment Results
|1906 (3)||1806 (3)||Var (%)||% to Total||1906 (6)||1806 (6)||Var (%)||% to Total||1812 (12)||1712 (12)||Var (%)||% to Total|
|Ready Mix Concrete||365.82||320.66||14||9||758.81||652.34||16||9||1315.21||1163.16||13||9|
|Less: Inter Segment Revenue||57.39||53.78||118||118||218.76||230.08|
|Net Sales/Income from operations||4149.82||3848.25||8||8068.93||7472.84||8||14801.62||14200.72||4|
|Segment Results (PBIT)|
|Ready Mix Concrete||16.21||27.42||-41||3||56.38||59.89||-6||5||116.71||98.10||19||8|
|Less: Unallocable expenditure (net of unallocable income)||-5.19||-10.68||-10.25||-24.39||-37.58||-33.92|
|Add: Interest and Dividend Income||37.03||26.74||174.84||49.77||104.90||91.87|
|Profit before share of profit of associates and joint ventures, exception item and tax||669.76||481.17||39||1189.63||853.96||39||1499.79||1299.14||15|
|Add: Share of profit of associates and joint ventures||2.87||1.97||6.09||4.92||10.32||10.92|
|Less Exceptional item||0||0||0.00||0.00|
|Profit Before Tax||672.63||483.14||1195.72||858.88||1510.11||1310.06|
|Capital Employed (Segment Assets - Segment Liabilities)|
|Ready Mix Concrete||155.79||115.68||35||1||155.79||115.68||35||1||138.84||94.04||48||1|
|PL:Profit to Loss, LP:Loss to Profit|
Var. (%) exceeding 999 has been truncated to 999
Figures in Rs crore
Source: Capitaline Corporate Database
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