ACC LIMITED Q1 RESULTS FY18-19: KEY HIGHLIGHTS
ACC Limited, one of the top cement companies in India, reported a mix set of numbers for quarter ended on 30 June 2018. The Company reported a 2.80% decline in the revenues (on consolidated basis) as compared to previous quarter last year. Listed below are a few highlighting feature –
ACC Limited’s total revenues from the operations stand at INR 3848.25 Cr (on consolidated basis) for the quarter ended 30 June 2018 compared to INR 3958.94 Cr a year ago, showing a 2.80 percent decline YOY.
If we considered previous quarter earning (March 31, 2018) where the company has registered a total revenues of INR 3624.59, it shows 6.17% increase on QoQ basis.
The profits of the company stood at INR 328.74 Cr for the period ended June 30 2017 showing a 0.77% increase on YOY basis (INR 326.23 Cr last year) and 31.29% increase on QoQ basis (INR 250.39 Cr on March 31, 2018)
Highlights of April-June 2018
- Cement Volume growth at 7%
- RMX volume growth at 22%
- Net Sales up by 13% to R3768 Cr
- Operating EBITDA improved by 5% to R669 Cr (excluding employee separation cost of R44 Cr)
The Company has achieved robust scale in Q2 2018, growing both cement and the ready mix concrete business by 7% and 22% respectively, as well as delivering a consolidated EBITDA growth of 5% YoY. On the other hand, cost headwinds continue, driven by the rise in input material and logistics costs.
Words from CEO
The positive impacts of our step change in cost management are favorably impacting our financial results. We remain optimistic in our capacity to develop new revenue lines as well as strengthen our performance in both the cement and ready mix business”, said Neeraj Akhoury, Managing Director & CEO.
About the Company: ACC Limited
Since inception in 1936, ACC Limited is India’s foremost manufacturer of cement and concrete. The company is engaged in the manufacture of cement and ready-mixed concrete. The company manufacture a range of Portland cement for general construction and special applications. In addition, the company also offer two products; (1) bulk cement, and (2) ready mix concrete.
The company’s operations are spread throughout the country with 17 modern cement factories, more than 62 Ready mix concrete plants, 21 sales offices, several zonal offices and a vast distribution network of over 10,000 dealers.
ACC Limited has a unique track record of innovative research, product development and specialized consultancy services. The name ACC is synonymous with cement and enjoys a high level of equity in the Indian market.
Stock Price Movement
The stock closed up by 1.38% to INR 1310.8 when the market closed! During the quarter ended June 2018, the share price of ACC Limited plunged by more than 11%
The economic upswing in 2018 supported by (1) buoyant consumption, (2) a normal monsoon, and (3) uptick in rural demand is expected to benefit the construction sector. Along with these features cement demand likely to be positive, driven by the Housing for All programme, sustained infrastructure spends and rural housing.
ACC Limited anticipates that cost pressures will remain, largely due to a rise in fuel costs as well other input material costs. The Company will continue to focus on improving efficiencies as well.
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