 "ACC Q2 net dips 29% at Rs 82 cr")
ACC, India’s second-largest cementmaker and part of the Swiss giant Holcim, posted disappointing quarterly numbers for the period July-September. Rains, which were above normal this season in many regions, led to subdued cement sales impacting prices.
The 30-million tonne cementmaker not only saw a decline in volumes but also reported a sharp drop in its profitability, on year-on-year basis. The street was expecting a net profit of about Rs 145 crore as indicated by Bloomberg consensus estimates but the consolidated net profit figure came at Rs 81.97 crore, a drop of 29 per cent year-on-year for the quarter ended September.
ACC also sold about 10 per cent less cement at 5.07 million tonne against 5.61 million tonne in the year-ago period.
The company’s consolidated sales during the quarter were down 9.75 per cent at Rs 2,473 crore compared with Rs 2,740 crore in the year ago quarter.
Higher costs took a toll on company’s profitability as its earnings before interest, depreciation, tax and amortisation (Ebitda) at Rs 273.70 crore declined 12.6 per cent year-on-year and was visibly lower that Bloomberg consensus estimate of Rs 315 crore.
The stock of ACC reacted negatively after the company announced quarterly numbers during market hours at around 1430 hrs. On the BSE, ACC’s shares ended the session down at Rs 1562.05, down three per cent.
“Although higher monsoon activity subdued sales during this quarter, it augurs well for demand in the coming months. Market conditions led to marginally lower realisations as compared to the previous year in all regions except in the north,” said ACC in a statement.
In its outlook, ACC said that on the supply side it expects the volumes to pick up as the newly commissioned units stabilise, especially in the fast growing eastern region.
“On the overall demand side, we maintain an optimistic outlook for the economy in the coming months,” it added.
The 30-million tonne cementmaker not only saw a decline in volumes but also reported a sharp drop in its profitability, on year-on-year basis. The street was expecting a net profit of about Rs 145 crore as indicated by Bloomberg consensus estimates but the consolidated net profit figure came at Rs 81.97 crore, a drop of 29 per cent year-on-year for the quarter ended September.
ACC also sold about 10 per cent less cement at 5.07 million tonne against 5.61 million tonne in the year-ago period.
The company’s consolidated sales during the quarter were down 9.75 per cent at Rs 2,473 crore compared with Rs 2,740 crore in the year ago quarter.
Higher costs took a toll on company’s profitability as its earnings before interest, depreciation, tax and amortisation (Ebitda) at Rs 273.70 crore declined 12.6 per cent year-on-year and was visibly lower that Bloomberg consensus estimate of Rs 315 crore.
The stock of ACC reacted negatively after the company announced quarterly numbers during market hours at around 1430 hrs. On the BSE, ACC’s shares ended the session down at Rs 1562.05, down three per cent.
“Although higher monsoon activity subdued sales during this quarter, it augurs well for demand in the coming months. Market conditions led to marginally lower realisations as compared to the previous year in all regions except in the north,” said ACC in a statement.
In its outlook, ACC said that on the supply side it expects the volumes to pick up as the newly commissioned units stabilise, especially in the fast growing eastern region.
“On the overall demand side, we maintain an optimistic outlook for the economy in the coming months,” it added.
