Companies

ACC Q3 net profit surges 20 per cent to Rs 364 cr

PTI New Delhi | Updated on October 19, 2020 Published on October 19, 2020

Sridhar Balakrishnan, Managing Director and Chief Executive Officer, ACC Limited   -  Business Wire India

Cost reduction plans helped drive significant margin expansion

Cement maker ACC Ltd on Monday reported a 20.25 per cent increase in consolidated net profit to Rs 363.85 crore for the third quarter ended September 30, 2020.

The company, which follows January-December financial year, had posted a profit of Rs 302.56 crore in the same quarter a year ago.

Its total revenue from operations was marginally up to Rs 3,537.31 crore during the quarter as against Rs 3,528.31 crore in the year-ago period.

ACC’s total expenses slipped 3.05 per cent to Rs 3,042.75 crore from Rs 3,138.67 crore.

ACC Managing Director & CEO Sridhar Balakrishnan said its “volumes and sales have bounced back to prior-year levels. Our efficiency and cost reduction plans have helped drive significant margin expansion during the quarter“.

Its cement volume was marginally up 0.77 per cent at 6.49 MT (million tonne) in the July-September quarter as against 6.44 MT a year ago.

The company’s revenue from cement was up 4.31 per cent at Rs 3,373.07 crore over Rs 3,233.40 crore in the year-ago quarter.

Its revenue from ready mix concrete in the quarter fell 41.29 per cent to Rs 196.57 crore compared to Rs 334.85 crore.

On the outlook, the company said it expects strong resurgence of cement demand helped by the government’s push to key infrastructure sectors.

“The Government’s thrust on infrastructure development, increased spending through measures aimed at reviving the rural economy and a sharper focus on the affordable housing segment is expected to drive a strong resurgence of cement demand and bring growth opportunities for the cement sector going forward,” said Balakrishnan.

Shares of ACC Ltd on Monday settled at Rs 1,562.80 on BSE, up 0.09 per cent from its previous close.

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Published on October 19, 2020
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