ACC Q4 PAT drops 41% YoY to Rs 281 cr

10 Feb 2022 , 10:45 AM

Consolidated profit before tax (PBT) surged 32.9% to Rs 383.93 crore in Q4 FY22 from Rs 288.99 crore in Q4 FY21. EBITDA skid 2.79% to Rs 556 crore in Q4 FY22 as compared to Rs 572 crore in Q4 FY21. EBITDA margin stood at 13.4% in Q4 December 2021 from 14.1% in Q4 December 2020.

Sales volume of Cement slipped 2.85% to 7.49 million tonnes in Q4 December 2021 as against 7.71 million tonnes in Q4 December 2020. Sales volume of Ready Mix Concrete stood at 0.73 million cubic metres during both Q4 FY22 as well as Q4 FY21. The investments in Ametha expansion project has also been progressing well, as per the companys exchange filing.

Sridhar Balakrishnan, the chief executive officer (CEO) and managing director (MD) of ACC, stated, 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 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.

For its outlook, ACC highlighted that, 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 Indias growth driven by the Governments commitment to investment in infrastructure across the board.

Meanwhile, the board has recommended a payment of dividend of Rs 58 per share of Rs 10 aggregating to Rs 1,089 crore. Free cash flow improved 14% during the year, supported by strong working capital management with year end cash balance with an excess of Rs 7,000 crore.

Shares of ACC rose 0.04% to Rs 2,311.05 on BSE. ACC, a member of the Holcim Group, is one of Indias leading producers of cement and ready mix concrete.

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