InvestorQ : What is your quick take on the Dec-21 quarter results of ACC Ltd?
Deepa Salunkhe made post

What is your quick take on the Dec-21 quarter results of ACC Ltd?

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Arya Nanda answered.
3 months ago
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ACC saw profits come under pressure due to a sharp increase in power and fuel costs in the Dec-21 quarter. However, the impact of material costs and of freight was limited. The pressure on the bottom line came more from exceptional items in the quarter. Top line sales saw flat to tepid volume growth but strong price hikes in cement kept the cash ringing. Here is a quick gist of the financials.

ACC Ltd

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 4,225.76

₹ 4,144.72

1.96%

₹ 3,749.00

12.72%

Operating Profit (Rs cr)

₹ 398.54

₹ 417.75

-4.60%

₹ 562.48

-29.15%

Net Profit (Rs cr)

₹ 280.81

₹ 472.42

-40.56%

₹ 450.19

-37.62%

Diluted EPS (Rs)

₹ 14.91

₹ 25.10

₹ 23.91

Operating Margins

9.43%

10.08%

15.00%

Net Margins

6.65%

11.40%

12.01%

For the Dec-21 quarter, the revenues were up 1.96% yoy at Rs.4,226 crore consolidated basis. Total sales volumes of cement were marginally lower at 7.49 million tonnes against 7.71 million tonnes in Dec-20 quarter. Favourable pricing resulted in overall higher sales in Q3. RMC business saw stead to flat volumes at 0.73 million cubic metres. For the financial year of ACC ended Dec-21, sales volume of cement stood higher at 28.89 million tonnes.

Operating profits were down -4.6% at Rs.399 crore with EBITDA at Rs.556 crore for the Dec-21 quarter. EBITDA margins of ACC were at 13.4% in Dec-21 quarter, lower compared to 14.1% in Dec-20 quarter. With EBIT at Rs.396 crore, the EBIT margins stood at 9.6% compared to 10.2% last year. Operating margins were lower largely due to higher power and fuel charges, while material costs and freight was under control. ACC declared a dividend of Rs.58 per share.

PAT for the Dec-21 quarter was -40.56% lower at Rs.281 crore due to exceptional restructuring charge of Rs.54.76 crore. In the Dec-20 quarter, ACC got the benefit of deferred tax credit of Rs.264 crore which pushed up the base and resulted in negative bottom line growth. PAT margins tapered from 11.40% in the Dec-20 quarter to 6.65% in Dec-21 quarter. Free cash flows improved 14% via strong working capital management.

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