ACC Q1 PAT jumps 74% YoY to Rs 563 cr
Cement sales volume jumped 21.49% to 7.97 million tonnes in Q1 FY21 as against 6.56 million tonnes in Q1 FY20. Sale of ready mix concrete dropped 10.75% to 0.83 million cubic metres in Q1 FY21 compared with 0.93 million cubic metres in Q1 FY20.
On a consolidated basis, EBITDA jumped 46.75% to Rs 860 crore in Q1 FY21 as against Rs 586 crore in Q1 FY20. EBITDA margin improved to 20.4% in Q1 FY21 as compared to 17.1% in Q1 FY20. Operating EBIT soared 67.13% to Rs 717 crore in Q1 FY21 as against Rs 429 crore in Q1 FY20.
Operating EBIT margin expansion of 450 basis points to 17% in Q4 FY21 compared with 12.5%, driven by capex led strong cost actions and higher growth in premium products.
The company commissioned large new grinding unit at Sindri (Jharkhand) in record time, adding a capacity of 1.4 MTPA (million tonnes per annum). The firm also launched ECOPact, the industry's broadest range of green concretes.
In its outlook, ACC said it believes that the government is taking all possible steps to intensify the vaccination program and control the spread of COVID-19. With government's increased spending and its strong focus on infrastructure development, ACC maintains a cautious yet positive outlook for overall cement demand in the coming months.
Commenting on the Q1 results, Sridhar Balakrishnan, managing director and chief executive officer of ACC, said: Health, Cost and Cash will continue to be our key focus in the coming quarters. This quarter, we delivered highest ever revenue and operating EBIT. Our cost efficiency project 'Parvat' is on track and has helped in managing some continuing cost headwinds. The grinding unit expansion in Sindri was completed in record 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. We aim to continue driving the four stated strategic priorities: Performance, Growth, Innovation and Sustainability, Balakrishnan added.
Shares of ACC fell 0.26% to Rs 1,876.85 on BSE. ACC, a member of the LafargeHolcim Group, is one of India's leading producers of cement and ready mixed concrete.
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