ACC Q3 Results: Profit Declines 60%, Misses Estimates

The cement-maker's third-quarter profit fell 60% to Rs 113.19 crore in comparison to the year-ago period.

<div class="paragraphs"><p>A banner for ACC cement on a rooftop in India. (Source: company website)</p></div>
A banner for ACC cement on a rooftop in India. (Source: company website)

ACC Ltd.'s third-quarter net profit fell and missed analysts' estimates.

The cement-maker reported 60% year-on-year decline in net profit at Rs 113.19 crore, according to an exchange filing. That compares with the 149.46 crore consensus estimate of analysts tracked by Bloomberg.

ACC Q3 Results FY23 (Consolidated, YoY)

  • Revenue up 7% at Rs 4,536.97 crore vs Rs 4,225.76 crore, and compared to Bloomberg estimates of Rs 4,509.62 crore.

  • Ebitda down 32% at Rs 379.14 crore vs Rs 556.25. Analysts had forecast it at Rs 449 crore.

  • Ebitda margin at 8.4%, compared to 13.3% last year, and an estimate of 10%.

  • Net profit down 60% at Rs 113.19 crore vs Rs 280.85 crore, and against an estimate of Rs 149.46 crore.

According to the exchange filing, volume increased to 7.7 tonnes, an increase of 12% quarter-on-quarter. It was aided by a rise in blended cement (clinker factor reduced from 57.2% to 56.1%), better route planning and higher operational synergies with parent Ambuja Cements Ltd.

"Higher demand for cement due to a pickup in construction activities and our relentless focus on operational excellence... helped us to clock a robust sequential growth in our top line and margins," ACC Ltd.'s CEO Ajay Kapur said.

He cited reduction in fuel and logistics costs by leveraging on synergies with the group's adjacencies, and improvement and expansion of the dealer network to serve nearest markets.

"With the rise in construction activities across our markets, we see the continuation of the elevated demand and strong volumes in the coming quarters as well," Kapur said.

Shares of the company closed 3.39% higher on Tuesday, compared to a 0.07% gain in the benchmark NSE Nifty 50 Index.

Of the 44 analysts tracking the company, 25 maintain a 'buy', 11 recommend a 'hold' and eight suggest a 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 25.8%.

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