ACC Q3 Results: Profit Slips 21% But In Line With Estimates
ACC's quarterly profit fell as its sales declined in a seasonally weak period.
ACC Ltd.’s third-quarter profit fell as its sales declined in a seasonally weak period. The bottom line, however, was in line with estimates.
The cement maker’s net profit fell 20.9% sequentially to Rs 450.2 crore in the three months ended September, it said in an exchange filing. That compares with the Rs 420.2-crore consensus estimate of analysts tracked by Bloomberg. The company follows calendar-year reporting.
Revenue declined 3.5% over the preceding quarter to Rs 3,749 crore. Analysts had projected the metric at Rs 3,703 crore.
Operating profit declined 18.1% sequentially to Rs 712.3 crore. Analysts had expected Rs 659.3 crore.
Volumes at 6.57 million tonnes vs 6.49 MT in the second quarter.
The quarter ended September is seasonally weak for cement companies as the monsoon disrupts construction activity. The comparable period a year earlier was marked by pandemic-related lockdowns.
The company expects the government's impetus on housing and infrastructure to drive demand for cement in the next few quarters. "Economic activity is gaining momentum driven by accelerated progress in vaccination drive and reduction in Covid-19 cases," it said in a statement.
Shares of ACC fell 2.5% on Tuesday compared with the S&P BSE Sensex which remained largely unchanged.