ACC Ltd Shares 3rd Quarterly Results

ACC Cement

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:46:27+05:30

Like most cement companies, the financial numbers of ACC also came under pressure due to the sharp spike in power and fuel costs in the quarter. However, the impact of the operating factors were limited. ACC did see pressure on the bottom line but that was more on account of exceptional items. Top line sales saw tepid volume growth but strong price appreciation in cement kept the turnstiles ringing.

 

Here is a summary of ACC Ltd Financial Numbers

 

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 4,225.76

₹ 4,144.72

1.96%

₹ 3,749.00

12.72%

Operating Profit (Rs cr)

₹ 398.54

₹ 417.75

-4.60%

₹ 562.48

-29.15%

Net Profit (Rs cr)

₹ 280.81

₹ 472.42

-40.56%

₹ 450.19

-37.62%

Diluted EPS (Rs)

₹ 14.91

₹ 25.10

 

₹ 23.91

 

Operating Margins

9.43%

10.08%

 

15.00%

 

Net Margins

6.65%

11.40%

 

12.01%

 

 

Let us start with the top line of ACC. It reported 1.96% growth in sales for the Dec-21 quarter at Rs.4,226 crore on a YoY consolidated basis. During the December 2021 quarter, the total sales volumes of cement were marginally on the lower side at 7.49 million tonnes as compared to 7.71 million tonnes. However, the pricing was favourable to higher sales in Q3. On a sequential basis, the revenues were up by 12.72%.

For ready mix concrete (RMC), the sales volumes were flat at 0.73 million cubic metres. For the financial year of ACC ended Dec-21, total sales volume of cement stood at 28.89 million tonnes compared to 25.53 million tonnes in the previous year. Volumes of ready mix concrete for the full year ending Dec-21 was 2.81 million cubic metres compared to 2.27 million cubic metres. ACC declared a dividend of Rs.58 per share.

Let us not turn to the operating performance of ACC in the Dec-21 quarter. Operating profits were down YoY by -4.6% at Rs.398.54 crore. Consolidated EBITDA for the Dec-21 quarter stood at Rs.556 crore compared to Rs572cr in the previous quarter. EBITDA margins of ACC stood at 13.4% in Dec-21 quarter compared to 14.1% in previous year. 

Consolidated operating EBIT came in at a healthy at Rs.396 crore, albeit lower, compared to EBIT of Rs.414 crore in the last year. At the same time, the EBIT margins stood at 9.6% compared to 10.2% last year, a fall of 60 bps lower YoY. Operating margins fell essentially due to higher power and fuel charges. Material costs and even the freight charges were under control, but the pressure came from the power and fuel segment on YoY basis.

Net profits for the Dec-21 quarter was down sharply by -40.56% at Rs.280.81 crore on a YoY consolidated basis. This was on the back of an exceptional restructuring write-off in the quarter to the tune of Rs.54.76 crore. In addition, the company also had the benefit of a deferred tax credit to the tune of Rs.264 crore in the previous quarter. This put pressure on the profits in the bottom line as the high base effect neutralized any operational gains.

PAT margins tapered from 11.40% in the Dec-20 quarter to 6.65% in the Dec-21 quarter with the sharp all being accounted for by one third charts and still at rates on a daily basis. The PAT margins were sharply lower on a sequential basis also. The Free cash flows improved by 14% in the quarter supported by strong working capital management.


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