ACC delivers healthy results amidst cost headwinds in Q3, PAT rises 24% yoy; stock soars 4%

ACC ran its operations with a strong focus on Green Products through the growth of ECO Pact concrete range.

Oct 20, 2021 11:10 IST India Infoline News Service

Cement
ACC has delivered a robust performance despite the challenging quarter. Its’s EBIT margin expanded by 70 basis points and PAT rose by 24% versus same period last year. ACC ran its operations with strong focus on Green Products through growth of ECO Pact concrete range.

The stock is currently trading at Rs2,343.50 up by Rs98 or 4.36% from its previous closing of Rs2,245.50 on the BSE.

The net profits were up 23.73% on a yoy basis at Rs450.19cr while on a sequential basis, the profits were down by -20.94%. The company is betting heavily on a sharp pick-up in cement demand from housing and infrastructure demand. Net margins at 12.01% were better than 10.29% in Sep-20 but lower than 14.66% NPM in Jun-21 quarter.

Sridhar Balakrishnan, Managing Director and CEO said “ACC has recorded solid performance during the quarter through operational excellence and focus on sustainability while meeting customers’ needs. Despite steep increase in fuel costs, our cost efficiency measures under project ‘Parvat’ have enabled us to maintain robust performance. During this period, ACC became the first company in the Indian construction sector to sign the Net Zero pledge - Business Ambition for 1.5°C. It is a commitment towards the 2030 intermediate targets to reduce greenhouse gas emissions, as approved by the Science Based Target Initiative (SBTi). We continue to drive low CO2 products and solutions such as ECOPact, which have performed very well during the last quarter.”

“I am confident that our relentless focus on execution of cost efficiency and capacity expansion projects will enable us to deliver strong shareholder value” said Sridhar Balakrishnan added.

Economic activity is gaining momentum driven by accelerated progress in vaccination drive and reduction in Covid cases. We believe that Government impetus on infrastructure and housing will augur well for cement demand in the next quarters. We are positive that the cement sector would benefit from increasing demand in various sectors such as housing, commercial and industrial construction, the cement company said.

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