ACC Ltd.’s profit surpassed estimates in the April-June quarter as cement sales increased on improved demand and capacity ramp-up.
Net profit rose 32.5 percent over the same quarter last year to Rs 326.20 crore, the cement manufacturer said in an exchange filing. The bottomline beat the consensus estimate of analysts tracked by Bloomberg by 23 percent. Revenue, after adjusting for excise duty, increased nearly 20 percent to Rs 3,452.80 crore in the same period.
Operating income, or earnings before interest, taxes, amortisation and depreciation, increased nearly 38 percent percent over last year. The EBITDA margin expanded to 18.4 percent from 16 percent in the same quarter last year.
Cement sales by volume, grew 10.1 percent during the April-June quarter compared to the same quarter last year. ACC had ramped up the capacity of its plant in Jamul, Chattisgarh which "enabled the company to reap benefits and strengthen its market presence in Eastern regions", the company said in a separate media release.
ACC StatementThe company improved productivity and operating efficiencies including raw material and fuel mix optimisation on a sustainable basis, thereby mitigating the adverse impact of rising raw material and fuel prices.
Revenue from the cement business rose 18 percent to Rs 3,774.5 crore from last year. The company earned Rs 5,123 for ever tonne of cement produced. This was 8.8 percent higher realisation than in the same quarter of the previous year.
ACC announced a dividend per share of Rs 11, it said in its exchange filing.
Shares of ACC Ltd. closed 0.18 percent lower, ahead of the announcement, while the benchmark Nifty 50 ended trade 0.3 percent up at its highest level ever.