A Year of Strong Performance by ACC; Fresh Capacity Expansions Commissioned

9 Feb 2022 , 08:59 PM

Business Wire India
   
Full Year 2021

● 40% increase in EBIT with margin expansion of 250 basis points
● Profit after Tax improved by 30% compared to the previous year
● Strong scaleup of Green Concrete ‘ECOPact’ in the first year of launch
 
October – December Quarter 2021

● EBIT at Rs.  396 Cr; adverse input inflation partly offset by strong cost savings
● Investments in Ametha expansion project progressing well

Consolidated Financial Results
 

		Quarter Oct-Dec 2021	Quarter Oct-Dec 2020	Year Jan-Dec 2021	Year Jan-Dec 2020
Sales Volume – Cement	Million Tonnes	7.49	7.71	28.89	25.53
Sales Volume – Ready Mix Concrete	Million Cubic metres	0.73	0.73	2.81	2.27
Net Sales	Rs. Crore	4,137	4,066	15,814	13,487
EBITDA#	Rs. Crore	556	572	2,998	2,355
EBITDA Margin	%	13.4%	14.1%	19.0%	17.5%
Operating EBIT#	Rs. Crore	396	414	2,397	1,716
Operating EBIT Margin	%	9.6%	10.2%	15.2%	12.7%
Profit before exceptional items and tax#	Rs. Crore	439	465	2,561	1,885
Profit after Tax	Rs. Crore	281	472	1,863	1,430

^#Including charge of Rs. 129 Cr in Q4’20 & Full Year 2020
 

“The year 2021 was a challenging one on many counts. The global economy witnessed major supply chain disruptions resulting in high inflation especially led by fuel costs. Cement demand was also muted during the quarter driven by multiple regional factors across India. Despite these challenges, ACC was able to deliver another year of strong performance. We delivered a sales growth of 17% during the year with an EBIT growth of 40%. Efficiency measures under Project ‘Parvat’ coupled with product premiumization initiatives have enabled to mitigate inflationary impacts and expand margins. With the launch of our Green products such as ‘ECOPact’ and the signing of Net Zero Pledge validated by SBTi^$, we have further accelerated our Sustainability journey during the year. I am confident, with our upcoming capacity and efficiency projects, we will continue to deliver strong value for all our stakeholders,” said Sridhar Balakrishnan, Managing Director and CEO.

^$SBTi: Science Based Target initiative
Covid 19 Update
 
Health and Safety continues to remain company’s key priority. Strict adherence to government guidelines and Covid appropriate behavior is ensured across the locations. Adequate infrastructure and medical support are made available to cater to any requirement that may arise. ACC teams continuously monitor the situation and take proactive steps to build a safe working environment. 99.9% of our employees and contract workers have already been fully vaccinated.

Performance
 
● Net Sales during the quarter increased to Rs. 4,137 Cr compared to Rs. 4,066 Cr last year
● EBITDA during the quarter at Rs. 556 Cr showed a decline of 2.8% vs previous year
● For the year, net sales increased to Rs. 15,814 Cr showing a growth of 17%
● Full year EBITDA improved by 27% at Rs. 2,998 Cr
● Free Cash Flow improved by 14% during the year, supported by strong working capital management with year end cash balance in excess of Rs. 7,000 Cr

Dividend
 
The Board of Directors has recommended payment of dividend at Rs. 58/- per share of Rs. 10/- aggregating to Rs. 1,089 Cr

Outlook
 
“Our economy has witnessed a steady recovery during the last few quarters. The adverse impact on the economy of recurring Covid waves is gradually waning, driven by rising vaccinations and adaptation to the new normal. The Union Budget 2022 is likely to provide further impetus to India’s growth driven by the Government’s commitment to investment in infrastructure across the board,” said Sridhar Balakrishnan, Managing Director & CEO.
About ACC

ACC Limited, a member of the Holcim Group, is one of India’s leading producers of cement and ready mix concrete. It has over 6,000 employees, 17 cement manufacturing sites, 78 concrete plants and a nationwide network of over 50,000 channel partners to serve its customers. With a world-class R&D centre in Mumbai, the quality of ACC’s products and services, as well as its commitment to technological development, make it a preferred brand in building materials. Established in 1936, ACC is counted among the country’s ‘Most Sustainable Companies’ and is recognised for its best practices in environment management and corporate citizenship. With sustainability at the core of its strategy, ACC is the first Indian Cement Company to sign the Net Zero Pledge with Science Based Targets. 
 
Disclaimer

This press release may contain “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and may contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should” or “will.” For us, uncertainties may arise from fluctuations in material costs, availability of limestone, demand of cement and other factors affecting the demand including those of a political, economic, business, competitive or regulatory nature. Actual future results may differ substantially or materially than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.