ACC fourth-quarter net surges 126% to Rs206 crore
08 February 2018
ACC Ltd (formerly Associated Cement Companies Ltd) has reported a 126 per cent increase in its net profit to Rs206 crore ($32.06 million) for the fourth quarter ended 31 December 2017, against Rs90.87 crore for the year-ago quarter.
Operating EBITDA improved by 47 per cent to Rs416 crore while profit before tax zoomed 98 per cent to Rs266 crore.
The consolidated total revenue of the company during October-December quarter increased to Rs3,540.24 crore, over Rs 3,102.42 crore in the corresponding quarter of the previous fiscal.
Revenue from operations in Q4 grew 29.5 per cent to Rs3,494.2 crore, compared to Rs2,697.3 crore in year-ago quarter.
ACC Ltd has informed BSE that the board of directors of the company at its meeting today, inter alia, recommended payment of a final dividend of Rs15 per equity share of Rs10 each. The total dividend proposed for the year 2017 (including interim dividend of Rs11 per share paid in August 2017) stands at Rs26 per share as compared to a total dividend of Rs17 per share paid in 2016.
Sales volume for the quarter stood at 6.92 million tonnes, a 27 per cent increase from 5.45 million tonnes in Q4 of 2016, the company said.
ACC, one of India's top cement makers, saw strong operating profit growth of 54.2 per cent year-on-year at Rs443 crore while profit margin expanded 200 basis points to 12.7 per cent in Q4.
"ACC's results demonstrate our capacity to respond quickly and resolutely to changing market dynamics and execute strategies with focus and determination. Our approach to customers and operational efficiencies is taking shape with a positive impact on results.
"ACC has delivered a strong net sales growth of 25 per cent, EBITDA has improved by 47 per cent and profit before tax (PBT) has increased significantly by 98 per cent, demonstrating positive operating leverage. This strong result has been achieved through an increased focus on premium products, improved customer service levels and by relentlessly driving productivity and cost optimisation.
"ACC is working with LafargeHolcim group to adopt best practices on commercial transformation and cost management. As one of India's leading cement companies, we believe that India continues to offer attractive opportunities for us to work with the government's vision on smart cities and infrastructure," Neeraj Akhoury, CEO and managing director f the company said.
ACC said backed by stabilisation of capacity utilisation at its Jamul and Sindri plants, cement sales, including premium products, recorded volume growth of 18 per cent during the October -December 2017-18 quarter
Two new commercial plants were commissioned at Mumbai and Pune and two dedicated projects were recently commissioned in Jharkhand. Redimix now has 57 operational plants in India and concrete is being supplied to diversified customer segments such as high-mid rise, individual home buyers (IHB), Metro, Power, Road projects, industrial segments and others, it said.
At 14:50 hours, the stock price was quoting at Rs1,668.00, up Rs77.70, or 4.89 per cent amid high volumes on the BSE.