ACC Ltd on Wednesday reported a 40.55 per cent increase in its consolidated net profit to Rs 280.85 crore for the fourth quarter ended December 31, 2021, due to adverse input inflation.
The company, which follows the January-December financial year cycle, had posted a net profit of Rs 472.44 crore during the corresponding quarter last year, said ACC, a subsidiary of Swiss building material major Holcim group (earlier LafargeHolcim), in a BSE filing.
Its total revenue from operations in October-December 2021 stood at Rs 4,225.76 crore, a rise of 1.95 per cent as compared with Rs 4,144.72 crore in the year-ago period.
ACC’s EBIT (earnings before interest and taxes) stood at Rs 396 crore in the October-December 2021 quarter due to “adverse input inflation”. However, it was partly offset by strong cost savings, said ACC Ltd in a post-earnings statement.
Its total expenses stood at Rs 3,842.83 crore, up 2.53 per cent in Q4/2021 as against Rs 3,747.64 crore a year ago.
In the October-December 2021 quarter, ACC’s cement sales volume was down 2.85 per cent to 7.49 million tons (MT) as against 7.71 MT of the corresponding quarter of 2020.
ACC’s revenue from cement rose 2.07 per cent to Rs 3,957.12 crore, against Rs 3,876.54 crore of the corresponding quarter.
Revenue from ready-mix concrete jumped 6.06 per cent to Rs 331.92 crore, against Rs 312.93 crore a year ago.
For the year 2021, ACC’s consolidated net profit jumped 30.26 per cent to Rs 1,863.10 crore as against Rs 1,430.26 crore of a year ago.
Its total revenue from operations for the year 2021 rose 17.16 per cent to Rs 16,151.67 crore. It was at Rs 13,785.98 crore in 2020.
ACC Managing Director and CEO Sridhar Balakrishnan said the year 2021 was a challenging one on many counts as the global economy witnessed major supply chain disruptions resulting in high inflation especially led by fuel costs.
Besides, cement demand was also muted during the quarter driven by multiple regional factors across India.
“Despite these challenges, ACC was able to deliver another year of strong performance. We delivered a sales growth of 17 per cent during the year with an EBIT growth of 40 per cent.
“Efficiency measures under project ‘Parvat’ coupled with product premiumisation initiatives have enabled to mitigate inflationary impacts and expand margins,” he said.
Over the outlook, Balakrishnan said economic activity has witnessed a steady recovery during the past few quarters.
“The adverse impact on the economy of recurring COVID-19 waves is gradually waning, driven by rising vaccinations and adaptation to the new normal. The Union Budget 2022 is likely to provide further impetus to India’s growth driven by the government’s commitment to investment in infrastructure across the board,” he said.
Meanwhile, in a separate filing, ACC said its board in a meeting held on Wednesday recommended payment of a dividend of Rs 58 per equity share of Rs 10 each (fully paid-up) for the financial year ended December 31, 2021.