ACC: Q1FY15 Result Analysis

ACC’s total income from operations increased to Rs 3059.85 crore in June’14 to Rs 2846.22 crore in June’13 (YoY) and it was marginally up from Rs 3026.90 crore in Mar’14 (QoQ). This was mainly on back of increase in net sales which stood at Rs 3008.99 crore in June’14 from Rs 2790.38 crore in June’13, up 7.83%.
 
The total expenses increased from Rs 2497.24 crore in June’13 to Rs 2747.87 crore in June’14. However, on a quarterly basis, it was up marginally from Rs 2740.82 crore in Mar’14. This can be attributed to the increase in purchase of stock in trade which increased by 27%, up from Rs 40.38 crore in June’13 to Rs 51.97 crore in June’14. Also, on a sequential basis it increased from Rs 34.04 crore, up 52%. This was followed by increase in employee benefits cost which rose to Rs 194.01 crore in June’14 from Rs 172.44 crore in June’13 (YoY). Furthermore, the freight and forwarding expenses were up by 17% to Rs 670.15 crore in June’14 from Rs 571.51 crore in June’13.The cost of raw material purchased also increased.
 
The net profit has decreased to Rs 240.03 crore from Rs 396.76 crore in June’13 (YoY). But, this was mainly due to increase in expenses. On a QoQ basis, it decreased marginally from Rs 257.55 crore in Mar’14. The EPS was down 39% to Rs 12.95 per share in June’14 as against Rs 21.30 per share in Mar’14 (QoQ).
 
Demand for the cement showed some improvement. The cement sales volume of the company stood at 6.35 million tonnes in June’14 as against 6.12 million tonnes in June’13. The company has declared an interim dividend of Rs 15 per share as compared to Rs 11 per share in 2013.
As announced earlier by the company, Kuldip Narula, CEO&MD will quit his office on August 12, 2014 and will be succeeded by Harish Badami from August 13, 2014.