ACC Limited announces consolidated Financial Results for First Quarter (January-March) 2019
Highlights Q1, 2019
- Profit After Tax up by 38%
- Operating EBITDA improved by 8%
- Net Sales increased by 8%
- Ready mix business volume growth sustained @19%
Consolidated Financial Results for First Quarter (January-March) 2019
“Our three-pronged strategy of customised solutions for consumers, focus on premium products and operational improvements are enhancing our bottom-line and powering ACC’s strong growth trajectory. ACC’s brand campaign “Karein Kuch Kamaal” is receiving very positive response across markets and will help us build long-term brand equity. Our ready mix concrete business has demonstrated consistently strong volume growth quarter after quarter. We are also investing in a pipeline of solutions and products including a portfolio of dry mix products,” said Neeraj Akhoury, Managing Director & CEO.
Net Sales during the quarter went up by 8% to INR 3850 Crore compared to INR 3557 Crore for the same quarter last year. Operating EBITDA for the quarter registered a growth of 8% to INR 532 Crore as against INR 492 Crore during the same quarter of the previous year.
The prices of fuel and slag rose in the quarter, which were mitigated by market initiatives, sustained cost reduction initiatives viz. material source-mix & fuel mix optimization and productivity improvement measures. Plant capacity utilization improved during the quarter.
Strict controls on third party spend resulted in lower fixed cost as well as Selling General & Administrative expenses (SG&A) on year on year basis.
Ready Mix Concrete
The company’s ready mix concrete business continues to deliver robust growth. Volumes of ready mix concrete grew strongly @19% and volumes of Value Added Solutions (VAS) also grew significantly in Q1’19 year on year. Eight new plants were commissioned in the quarter bringing the total number of ready mix concrete plants to 80.
Predictions of a normal monsoon augur well for the rural economy. The Government’s continued thrust on infrastructure development as well as Housing-for-All initiatives are expected to invigorate the construction sector and stimulate cement demand.