ACC Ltd has announced the financial results for the period ended September 30, 2019 (Q3 CY2019).
The cement industry witnessed muted demand during the quarter due to extended monsoon Net Sales during the quarter went up by 3% to Rs. 3464 Crore compared to Rs. 3364 Crore for the same quarter last year. Operating EBITDA for the quarter grew strongly by 26% year-on-year to reach Rs. 557 crore.
Input cost of raw materials were lower year-on-year supported by supply chain efficiency. Fixed costs as well as Selling, General & Administrative expenses(SG&A) continued to be lower on year-on-year basis.
"ACC continues to deliver its profitable growth strategy with strong EBITDA and Net Profit growth. Our new product offerings, particularly in premium segments along with growth in ready mix volumes supported in delivering higher net sales. We continue to deliver significant operational efficiencies which resulted in reduction of our fixed and variable costs. ACC's capacity expansion strategy is under execution in attractive markets. We remain confident that cement demand growth will strengthen in the coming months" said Neeraj Akhoury, Managing Director & CEO.
Readv Mix Concrete
The company's ready mix concrete business registered significant growth of 10% in top line supported by higher volumes. Volume of Value Added Solutions(VAS) grew substantially in Q3'1.9 ar-on-year. Three new plants were added during the quarter, bringing ACC's operational ready mix plants in India to 83.
ACC is executing projects that will add new capacity in the markets of Uttar Pradesh, Madhya Pradesh, Bihar. Jharkhand and West Bengal. We continue to look out for new growth opportunities which can add value to our business.
We maintain a positive outlook for demand in the coming months. The Government's recent steps such as reduction in corporate tax as well as lowering of interest rates are expected to stimulate the economy and drive infrastructure and affordable housing demand.
Shares of ACC LTD. was last trading in BSE at Rs.1498.85 as compared to the previous close of Rs. 1468.6. The total number of shares traded during the day was 55422 in over 2616 trades.
The stock hit an intraday high of Rs. 1504.6 and intraday low of 1461.7. The net turnover during the day was Rs. 82375037.