ACC rose 1.92% at Rs 2288.70 after the cement major's consolidated net profit rose 23.73% to Rs 450.19 crore on 5.36% rise in net sales to Rs 3653.30 crore in Q3 September 2021 over Q3 September 2020.
Profit before tax (PBT) rose 12.81% to Rs 609.95 crore in Q3 September 2021 over Q3 September 2020.EBITDA rose 6.11% to Rs 712 crore during the period under review. EBITDA margin stood at 19.5% during the quarter compared with 19.4% in the same quarter last year. EBIT for the quarter is higher by 10% at Rs 562 crore.
Cement sales volume rose 1.23% to 6.57 million tonnes while ready mix concrete (RMC) volume jumped 47.83% to 0.68 million cubic metres in Q3 September 2021 over Q3 September 2020.
Cost of material as a percentage of sales grew by 200 bps to 13.1% in Q3 FY21 compared to last year. Power and fuel costs increased by 340 bps to 21.6% while freight costs fell 125 bps to 23.55% in the quarter.
Sridhar Balakrishnan, managing director and CEO said: ACC has recorded solid performance during the quarter through operational excellence and focus on sustainability while meeting customers' needs. Despite steep increase in fuel costs, our cost efficiency measures under project 'Parvat' have enabled us to maintain robust performance."
ACC said that economic activity is gaining momentum driven by accelerated progress in vaccination drive and reduction in Covid cases. The government impetus on infrastructure and housing will augur well for cement demand in the next quarters. The company is positive that the cement sector would benefit from increasing demand in various sectors such as housing, commercial and industrial construction.
ACC, a member of the Holcim Group, is one of India's leading producers of cement and ready mix concrete.
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