Commenting on the performance, Managing Director & CEO Mr. Neeraj Akhoury said in a statement: ACC continues on strong growth trajectory and have delivered a robust performance. Expansion in EBITDA has been supported by growth in premium products, higher value-added services in our ready mix concrete business and efficiencies in manufacturing, supply chain and support functions.
Consolidated performance for the December Quarter
For quarter ended December 2019, consolidated total income from operation inclined 4% to Rs 4,060.31 crore. The Companys cement sales volumes inclined 3.9% to 7.76 million tonnes during the quarter, while cement realisation eased marginal 0.4% to Rs 4,774 per tonne.
The companys ready mix concrete business continued to register robust growth of 12%. Value Added Products & services (VAPS) showed a strong growth @52% year-on-year. Seven new plants commissioned during the quarter, bringing ACCs operating ready mix plants in India to 90 which contributed to the volume growth.
The cement segment revenue, contributing 91% of total revenue, gained 3% to Rs 3,704.94 crore. The ready-mix concrete (RMC) segment revenue, contributing 9% of total revenue, grew 8% to Rs 388.89 crore.
The Operating Margin (OPM) was up 80 bps to 13.3%, as input cost optimized through better material source mix optimisation and supply chain management. Freight & Forwarding cost reduced year-on-year due to improvement in logistics efficiency. As per percentage to sales and net of stock adjustments, freight & handling cost decreased 30 bps to 26.4%, power & fuel cost 10 bps to 19.8%, and raw material cost 350 bps to 14% during the quarter. As a result, the operating profit (OP) grew 11% to Rs 540.96 crore.
At segment level, PBIT of cement segment grew 9% to Rs 314.59 crore. The PBIT of RMC segment inclined 91% to Rs 68.03 crore. Margins of cement segment increased 40 bps to 8.5% while margin was up by 760 bps to 17.5% for RMC segment.
The other income rose 92% to Rs 57.54 crore. Interest cost rose by 31% to Rs 29.26 crore, while depreciation cost was up 4% to Rs 160.81 crore. Thus, PBT grew by 20% to Rs 408.43 crore.
With gain in net Tax outgo by 26% to Rs 140.03 crore (excludes tax write-back of Rs 500.63 crore pertaining to earlier years), the PAT before MI and Share of profits from Associate rose 17% to Rs 268.40 crore. After accounting profit of Rs 4.88 crore in Share of profits from associates, and NIL outflows in Minority interest, the Net Profit rose 18% to Rs 273.28 crore.
With inclusion of tax write-back of Rs 500.63 crore pertaining to earlier years, Net profit was down 63% to Rs 273.28 crore.
Consolidated performance for CY19
For the fiscal ended December 2019, consolidated sales inclined 6% to Rs 15,657.55 crore, due to jump in sales volume and realization. The combined domestic cement sales rose 1.8% to 28.89 MT while realization grew 2.9% to Rs 4,973 per tonne.
The Operating Margin (OPM) grew 160 bps to 15.4%. As a result, the operating profit inclined by 18% at Rs 2,412.78 crore.
The other income grew 123% to Rs 318.43 crore, thus, the PBIDT rose 25% at Rs 2,731.21 crore. With fall in interest outgo by 2% to Rs 86.27 crore and gain in depreciation allowance by 1% to Rs 606.44 crore, PBT, as a result, inclined 36% to Rs 2,038.50 crore.
The Tax Expense escalated by 38% to Rs 674.98 crore (excludes tax write-back of Rs 500.63 crore pertaining to earlier years). Thus, PAT before MI and Share of profits from Associate by rose by 35% to Rs 1,363.52 crore. After accounting gain of Rs 14.02 crore in Share of profits from associates and NIL Minority interest, the Net Profit, as a result, inclined 35% to Rs 1,377.54 crore.
With inclusion of tax write-back of Rs 500.63 crore pertaining to earlier years, Net profit was down 9% to Rs 1,377.54 crore.
The company has recommended payment of a dividend of Rs 14 per share on a face value of Rs 10 aggregating to Rs 262.90 crore.
The company expects the governments major announcement to grant full tax exemption for sovereign wealth funds for investment in infrastructure projects along with abolition of Dividend Distribution Tax (DDT) will be positive for new investments in the sector and help in revival of cement demand. The recently announced Rs 102 lakh crore of infrastructure projects, under National Infrastructure Pipeline (NIP) that will be implemented in the next five years is also expected to drive cement demand.
The scrip closed at Rs 1,501.35 on 07 February 2020 on the BSE.
ACC: Consolidated Results
|1912 (3)||1812 (3)||Var %||1912 (12)||1812 (12)||Var %|
|Income from Operations||4060.31||3895.60||4||15657.55||14801.62||6|
|PBT before EO||408.43||340.29||20||2038.50||1499.79||36|
|PBT after EO||408.43||340.29||20||2038.50||1499.79||36|
|PAT before minority interest||268.40||228.77||17||1363.52||1009.67||35|
|Share in Profit of Associates||4.88||2.95||65||14.02||10.32||36|
|* 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
|1912 (3)||1812 (3)||Var (%)||% to Total||1912 (12)||1812 (12)||Var (%)||% to Total|
|Ready Mix Concrete||388.89||359.54||8||9||1482.55||1315.21||13||9|
|Less: Inter Segment Revenue||33.52||46.12||191.81||218.76|
|Net Sales/Income from operations||4060.31||3895.60||4||15657.55||14801.62||6|
|Segment Results (PBIT)|
|Ready Mix Concrete||68.03||35.70||91||18||133.21||116.71||14||7|
|Less: Unallocable expenditure (net of unallocable income)||-3.91||-7.58||-18.55||-37.58|
|Add: Interest and Dividend Income||51.16||30.31||269.49||104.90|
|Profit before share of profit of associates and joint ventures, exception item and tax||408.43||340.29||20||2038.50||1499.79||36|
|Add: Share of profit of associates and joint ventures||4.88||2.95||14.02||10.32|
|Less Exceptional item||0||0||0.00||0.00|
|Profit Before Tax||413.31||343.24||2052.52||1510.11|
|Capital Employed (Segment Assets - Segment Liabilities)|
|Ready Mix Concrete||115.12||138.84||-17||1||115.12||138.84||-17||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
Powered by Capital Market - Live News