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Commenting on the performance, Managing Director & CEO Mr. Neeraj Akhoury said in a statement: ACC continues to deliver its profitable growth strategy with strong EBITDA and Net Profit growth. the Company new product offerings, particularly in premium segments along with growth in ready mix volumes supported in delivering higher net sales. We continue to deliver significant operational efficiencies which resulted in reduction of our fixed and variable costs. ACCs capacity expansion strategy is under execution in attractive markets. We remain confident that cement demand growth will strengthen in the coming months.
Consolidated performance for the September Quarter
For quarter ended September 2019, consolidated total income from operation inclined 3% to Rs 3,528.31 crore. The Companys cement sales volumes declined 1.5% to 6.44 million tonnes during the quarter, while cement realisation improved by 3.1% to Rs 5,021 per tonne.
The companys ready mix concrete business registered significant growth of 10% in top line supported by higher volumes. Volume of Value Added Solutions (VAS) grew substantially in Q3CY19 year-on-year. Three new plants were added during the quarter, bringing ACCs operational ready mix plants in India to 83.
The cement segment revenue, contributing 91% of total revenue, gained 2% to Rs 3,233.40 crore. The ready-mix concrete (RMC) segment revenue, contributing 9% of total revenue, grew 10% to Rs 334.85 crore.
The Operating Margin (OPM) was up 290 bps to 15.8%, as input costs of raw materials were lower year-on-year supported by supply chain efficiency. Fixed costs as wellas Selling, General& Administrative expenses(SG&A) continued to be lower on year-on-year basis. As a result, the operating profit (OP) grew 26% to Rs 557.10 crore.
At segment level, PBIT of cement segment grew 46% to Rs 400.02 crore. The PBIT of RMC segment declined 58% to Rs 8.80 crore. Margins of cement segment increased 380 bps to 12.4% while margin was down by 430 bps to 2.6% for RMC segment.
The other income rose 55% to Rs 50.80 crore. Interest cost fell by 18% to Rs 16.26 crore, while depreciation cost was virtually flat at Rs 151.20 crore. Thus, PBT grew by 44% to Rs 440.44 crore. With gain in net Tax outgo by 43% to Rs 140.44 crore, the PAT before MI and Share of profits from Associate rose 45% to Rs 299.51 crore. After accounting profit of Rs 3.05 crore in Share of profits from associates, and NIL outflows in Minority interest, the Net Profit rose 45% to Rs 302.56 crore.
Consolidated performance for M9CY19
For quarter nine month ended September 2019, consolidated sales inclined 6% to Rs 11,597.24 crore, due to jump in sales volume and realization. The combined domestic cement sales rose 1% to 21.1 MT while realization grew 4.3% to Rs 5,053 per tonne.
The Operating Margin (OPM) grew 180 bps to 16.1%. As a result, the operating profit inclined by 20% at Rs 1,871.82 crore.
The other income grew 132% to Rs 260.89 crore, thus, the PBIDT rose 27% at Rs 2132.71 crore. With fall in interest outgo by 13% to Rs 57.01 crore and drop in depreciation allowance by 1% to Rs 445.63 crore, PBT, as a result, inclined 41% to Rs 1,630.07 crore.
The Tax Expense escalated by 41% to Rs 534.95 crore. The effective tax rate grew to 32.8% from 32.7% corresponding previous period. Thus, PAT before MI and Share of profits from Associate by rose by 40% to Rs 1,095.12 crore. After accounting gain of Rs 9.14 crore in Share of profits from associates and NIL Minority interest, the Net Profit, as a result, inclined 40% to Rs 1,104.26 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.
ACC is executing projects that will add new capacity in the markets of Uttar Pradesh, Madhya Pradesh, Bihar, Jharkhand, and West Bengal. ACC continues to look out for new growth opportunities which can add value to business.
The Company maintains a positive outlook for demand in the coming months. The Governments recent steps such as reduction in corporate tax as well as lowering of interest rates are expected to stimulate the economy and drive infrastructure and affordable housing demand.
The scrip closed at Rs 1,498.85 on 15 October 2019 on the BSE.
ACC: Consolidated Results
|1909 (3)||1809 (3)||Var %||1909 (9)||1809 (9)||Var %||1812 (12)||1712 (12)||Var %|
|Income from Operations||3528.31||3433.18||3||11597.24||10906.02||6||14801.62||13285.13||11|
|PBT before EO||440.44||305.54||44||1630.07||1159.50||41||1499.79||1299.14||15|
|PBT after EO||440.44||305.54||44||1630.07||1159.50||41||1499.79||1299.14||15|
|PAT before minority interest||299.51||206.69||45||1095.12||780.90||40||1510.30||913.59||65|
|Share in Profit of Associates||3.05||2.45||24||9.14||7.37||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
|1909 (3)||1809 (3)||Var (%)||% to Total||1909 (9)||1809 (9)||Var (%)||% to Total||1812 (12)||1712 (12)||Var (%)||% to Total|
|Ready Mix Concrete||334.85||303.33||10||9||1093.66||955.67||14||9||1315.21||1163.16||13||9|
|Less: Inter Segment Revenue||39.94||54.79||158||173||218.76||230.08|
|Net Sales/Income from operations||3528.31||3433.18||3||11597.24||10906.02||6||14801.62||14200.72||4|
|Segment Results (PBIT)|
|Ready Mix Concrete||8.80||21.12||-58||2||65.18||81.01||-20||4||116.71||98.10||19||8|
|Less: Unallocable expenditure (net of unallocable income)||-4.39||-5.61||-14.64||-30.00||-37.58||-33.92|
|Add: Interest and Dividend Income||43.49||24.82||218.33||74.59||104.90||91.87|
|Profit before share of profit of associates and joint ventures, exception item and tax||440.44||305.54||44||1630.07||1159.50||41||1499.79||1299.14||15|
|Add: Share of profit of associates and joint ventures||3.05||2.45||9.14||7.37||10.32||10.92|
|Less Exceptional item||0||0||0.00||0.00|
|Profit Before Tax||443.49||307.99||1639.21||1166.87||1510.11||1310.06|
|Capital Employed (Segment Assets - Segment Liabilities)|
|Ready Mix Concrete||119.6||158.18||-24||1||119.6||158.18||-24||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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