ACC reports 74% jump in first quarter profit at Rs 563 crore

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New Delhi: Cement maker ACC Ltd on Monday reported a 74.17% increase in consolidated net profit to Rs 562.59 crore for the first quarter ended March 2021, helped by an increase in sales and cost efficiency.

The company, which follows the January-December financial year, had posted a profit of Rs 323.02 crore in the corresponding quarter a year ago, ACC said in a BSE filing.

Total revenue from operations in the January-March quarter was at Rs 4,291.97 crore, up 22.57% from Rs 3,501.71 crore earlier.

“This quarter, we delivered highest-ever revenue and operating EBIT. Our cost-efficiency project ‘Parvat’ is on track and has helped in managing some continuing cost headwinds,” ACC Managing Director and CEO Sridhar Balakrishnan said.

The company’s total expenses stood at Rs 3,586.19 crore, up 16.29% as against Rs 3,083.78 crore a year ago. Revenue from cement segment jumped 26.25% to Rs 3,980.84 crore, compared to Rs 3,153.07 crore earlier. Cement sales volume rose 21.49% to 7.97 million tonnes (MT) as against 6.56 MT in January-March 2020. Ready-mix concrete revenue was down 7.71% to Rs 359.78 crore, from Rs 389.83 crore.

Sales volume of ready-mix concrete declined 10.8% to 0.83 million cubic metres.

“We have demonstrated strong resilience which has been reflected in our performance this quarter. We aim to continue driving the four stated strategic priorities: Performance, Growth, Innovation and Sustainability,” he said. Over the outlook, the company said it is “cautious yet positive” and believes the government is taking all possible steps to intensify the vaccination program and control the spread of COVID-19.

“With Government’s increased spending and its strong focus on infrastructure development, we maintain a cautious yet positive outlook for overall cement demand in the coming months,” said ACC Ltd.

Sharing updates on the COVID-19 situation, ACC said it has facilitated option to its employees and contract workmen to get vaccinated.

“Almost 70% of our eligible employees have been vaccinated. We are ensuring strict adherence to government guidelines across our plants and offices,” it said. “We are closely monitoring the situation and will continue to take all necessary actions to ensure the health and safety of our employees and communities.” Shares of ACC Ltd on Monday settled at Rs 1,876.85 on the BSE, down 0.26 per cent from the previous close.