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ACC Q1 results: Net profit jumps 74% to Rs 563 crore

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MUMBAI: Cement maker, has reported a 74 per cent rise in consolidated net profit at Rs 562.59 crore as against a net profit of Rs 323 crore during the same period last year.

“We aim to continue driving the four stated strategic priorities, performance, growth, innovation and sustainability,” said Sridhar Balakrishnan, managing director of ACC Ltd.

The company follows January-December as its financial year.

This quarter, the company has delivered the highest-ever revenue and operating earnings at Rs 4,292 crore and Rs 717 crore respectively.

“Our cost-efficiency project ‘Parvat’ is on track and has helped in managing some continuing cost headwinds,” Balakrishnan added.

ACC Ltd reported a 47 per cent jump in earnings before interest, taxes, depreciation and amortization during the quarter at Rs 860 crore. ACC’s total expenses during the quarter were recorded at Rs 3,586.14 crore as against Rs 3,083.53 crore in the same period last year.

The company’s operational expenses per tonne were down by 3.5 per cent yoy led by lower employee expense, and other expense and Freight cost, said Sanjeev Kumar Singh, research analyst, Emkay Global Financial Services.

“A sharp improvement in operating performance despite soft realization was encouraging. ACC has been working on improving cost efficiencies through various ways started paying off,” said Binod Modi, Head – Strategy at Reliance Securities.

The company said that the grinding unit expansion in Sindri was completed on time and is fully operational.

“The execution of our Greenfield growth project in Ametha and associated grinding units is progressing as per plan. Additionally, our efficiency projects such as Waste Heat Recovery are on track,” Balakrishnan said.

Commissioning of new capacities and a further improvement in operating efficiencies by way of setting up waste-heat recovery system at three plants should aid it to witness sustainable growth. We have a BUY rating on the stock, said Analyst Binod Modi.

“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,” the company said in its statement.

The company updated that around 70 per cent of the eligible employees have been vaccinated. During this quarter, ACC has also launched the green concrete ECOPact.

ECOPact is concrete with 30-50 per cent lower embodied carbon content compared to a reference concrete designed with OPC. The product range uses CO2 reduced binders and is manufactured with optimized mix designs to reduce its carbon footprint.

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