Companies

ACC net profit up 20% in Q3 on lower cost, better realisation

Our Bureau Mumbai | Updated on October 19, 2020 Published on October 19, 2020

Net sales of the company were up marginally at ₹3,468 crore during the quarter   -  REUTERS

Bets on Govt thrust on infra development, affordable housing to boost cement demand

ACC, one of the largest cement companies, reported 20 per cent increase in net profit at ₹364 crore in the third quarter ended September 30, against ₹303 crore logged in the same period last year on the back of better realisation and lower cost.

Net sales of the company, which follows January-December financial year, were up marginally at ₹3,468 crore (₹3,464 crore). Overall production during the quarterwas flat at 6.49 million tonnes (6.44 mt). Earnings before interest, tax and depreciation were higher at ₹671 crore (₹557 crore).

Operational cost was down three per cent at ₹3,043 crore (₹3,139 crore) as raw material cost plunged to ₹384 crore (₹522 crore).

The company believes that the economic recovery is underway and it will bounce back strongly in the next few quarters. The Government's thrust on infrastructure development, increased spending through measures aimed at reviving the rural economy and a sharper focus on affordable housing segment is expected to drive strong resurgence of cement demand, it said.

Sridhar Balakrishnan, Managing Director & CEO, ACC, said despite Covid headwinds, the economy is witnessing early signs of recovery and has managed to achieve last year's production and sales volumes.

“Our efficiency and cost reduction plans have helped drive significant margin expansion during the quarter. We continue to manage working capital effectively resulting in healthy cash flow delivery,” he added.

The company has resumed operations at all locations following mandated safety protocols to ensure health and safety of employees, he added.

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Published on October 19, 2020
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