Cement maker ACC Ltd. reported a revenue of Rs 2,470.5 crore for the July-September quarter, a decline of 7 percent from the same quarter last year. The figure was lower than the Bloomberg consensus estimate of Rs 2,657.6 crore.
Net profit fell 28.1 percent to Rs 84.10 crore from Rs 117 crore during the same quarter last year, according to its filing on the stock exchanges. This was significantly lower than analyst estimate of 188.4 crore. The fall in profits was due to a poor operating performances and higher interest costs.
Earnings before interest, tax, depreciation and amortisation fell 12.8 percent on a year-on-year basis to Rs 273.37 crore. EBITDA margins contracted 39 basis points to 10.85 percent from 11.24 percent during the same quarter last year due to an increase in employee expenses that increased 17.8 percent on a year-on-year basis.
Cement sales volume stood at 5.07 million tonne in this quarter versus 5.61 million tonne in corresponding quarter last year while sales realisations fell 1 percent.
Although higher monsoon activity subdued sales during the quarter, it augurs well for demand in the coming months as we maintained an optimistic outlook for the economy in coming months.ACC Statement
Market conditions led to marginally lower realisations compared to previous year in all regions except in north, whereas net selling prices registered an improvement on a sequential basis, the company added in its stock exchange filing.
The company remains optimistic on the demand scenario going forward, and expects to commission the remaining part of the Jamul integrated project by the end of this month, the company said in its filing.
On the supply side, we expect our volumes to pick up as the newly commissioned units stabilize, especially in the fast growing eastern regions. On the overall demand side, we maintain an optimistic outlook for the economy in the coming months.ACC Statement
Shares of the company fell as much as 4.09 percent to Rs 1,543 on the Bombay Stock Exchange - the lowest since June 14.