ACC Q3 20% YoY Jump In Profit
Cement manufacturer ACC on October 19 posted a consolidated net profit of Rs 363.85 crore, up 20.26 percent year-on-year (YoY) for the September quarter. The company had reported a profit of Rs 302.56 crore in the corresponding quarter of the previous financial year.
The company, which follows January-December financial year, posted Q3 revenue at Rs 3,537.3 crore against Rs 3,528.31 crore YoY. Revenue was also higher than the CNBC-TV18 poll of Rs 3,450 crore.
The company said efficiency and cost-reduction drove EBITDA margin expansion by 328 basis points and focus on premium products enabled net sales growth of 4 percent in cement over the previous year.
“Despite COVID-19 headwinds, the Indian economy is witnessing early signs of recovery. At ACC, this recovery has been reflected in our Q3 results, where our volumes and sales have bounced back to prior-year levels,” ACC Managing Director & CEO Sridhar Balakrishnan said.
The government’s thrust on infrastructure development, increased spending through measures aimed at reviving the rural economy and a sharper focus on the affordable housing segment was expected to drive up cement demand.