 "ACC Q2 net profit up two-fold to Rs 569 cr; revenue up 49% to Rs 3,885 cr")
Cement maker ACC Ltd on Monday reported an over two-fold jump in consolidated net profit to Rs 569.45 crore for the second quarter ended June 2021, helped by a lower base, increase in sales and cost efficiency.
The company, which follows the January-December financial year, had posted a profit of Rs 270.95 crore in the April-June quarter a year ago, ACC said in a BSE filing.
The company, a subsidiary of Swiss building material major Holcim group (earlier LafargeHolcim), reported revenue from operations of Rs 3,884.94 crore during the quarter, up 49.29 per cent from Rs 2,602.24 crore in the year-ago period.
ACC Managing Director and CEO Sridhar Balakrishnan said, "ACC has recorded very good performance this quarter. With a strong focus on supply chain efficiencies and cost optimization, the company has emerged stronger and more resilient. Waste Heat Recovery System projects at various sites are progressing well."
Total expenses climbed 40.97 per cent to Rs 3,175.47 crore, compared to Rs 2,252.62 crore earlier.
Revenue from cement rose 43.96 per cent to Rs 3,672.31 crore, as against Rs 2,550.99 crore in the corresponding quarter of the previous year.
Cement sales volume jumped 43.7 per cent to 6.84 million tonnes (MT) as against 4.76 MT in April-June 2020.
Revenue from ready-mix concrete increased four-fold to Rs 255.08 crore, as against Rs 62.23 crore.
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For H1 2021 (January to June), ACC Ltd's consolidated net profit was up 90.59 per cent at Rs 1,132.04 crore as against Rs 593.97 crore in the year-ago period.
Revenue from operations was up 33.96 per cent in January-June 2021 to Rs 8,176.91 crore, from Rs 6,103.95 crore.
On the outlook, Balakrishnan said he strongly believes in the resilience of the Indian economy as it continues to navigate the impact of COVID-19.
"Demand is expected to recover supported strongly by Government's increased spending on large scale infrastructure projects which augurs well for the cement sector. We believe we are well poised to capitalize on the growth momentum in the ensuing period," he said.
Sharing updates on COVID-19, ACC said it has encouraged its employees, their families and communities to actively participate in the vaccination drive.
"Adequate infrastructure and medical support are made available to ensure safety of our employees. Our team continuously monitors the situation and takes proactive steps to ensure the health and safety of our employees and communities," it said.
Shares of ACC Ltd on Monday settled at Rs 2,150.65 on the BSE, up 1.01 per cent from the previous close.
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