Companies

ACC net up 73% in Dec quarter on tax write-back

Our Bureau Mumbai | Updated on February 11, 2021

Govt’s thrust on infra spending will boost cement demand, says MD

ACC, a LafargeHolcim-owned cement company, reported 73 per cent increase in net profit in the December quarter at ₹472 crore, against ₹273 crore logged in the same period last year, on the back of higher realisation and tax write-back of ₹264 crore.

Revenue was up two per cent at ₹4,066 crore (₹3,970 crore). The Board has recommended a final dividend of ₹14 a share.

During the quarter under review, the company has taken a charge of ₹176 crore for impairment of assets at Madukkarai unit as the carrying cost exceeds its recoverable amount.

The company adopted the reduced corporate tax rate offered by the government and accordingly, the net deferred tax liability as on January 1 amounting to ₹180 crore has been reversed, besides write back of ₹69-crore tax expenses, it said.

Sales volume in the quarter was flat at 7.71 million tonnes (7.76 mt).

EBITDA during the quarter was up 30 per cent at ₹701 crore.

The company generated additional cash and cash equivalents of ₹1,357 crore last year, driven mainly by strong working capital actions.

Economic revival

Sridhar Balakrishnan, Managing Director, ACC, said the economy is on the recovery path as the government continues to fight Covid pandemic and the initiative taken in the Budget is expected to give further impetus to economic revival.

The cost efficiency programmes and working capital optimisation initiatives have helped deliver strong results, he said.

In January, the company commissioned a new grinding unit at Sindri in Jharkhand, with a cement capacity of 1.4 mtpa which will further strengthen its position in the eastern region.

“We are encouraged by the Government's increased spending on infrastructure development, particularly roads, railways, affordable housing and other schemes as announced in the recent Union Budget and the pro-active measures will open up more opportunities for the cement sector which will stimulate cement demand and enhance economic growth," said the company.

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Published on February 11, 2021
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