ACC profitabilty dwindles in Q4FY15

ACC declared its Q4FY15 results on February 10. The company follows January to December financial year. Its revenue increased by 2.64 per cent to Rs 2912 crore in Q4FY15 as compared to same period in the previous fiscal year. ACC witnessed 3.99 per cent increment in cement sales volume and stood at 6 million tonnes as of Q4FY15. The company’s total expenditure increased by 2.03 per cent to Rs 2632 crore in Q4FY15 on a yearly basis.

ACC reported EBITDA of Rs 280 crore with a growth of 8.79 per cent in Q4FY15 as compared to same period in previous financial year. The company’s EBITDA margin expanded by 54 basis points to 9.6 per cent in Q4FY15 on a yearly basis. Its other income decreased by 54.75 per cent to Rs 19 crore in Q4FY15 as compared to same period in previous fiscal year. ACC’s net profit dropped by 68.61 per cent to Rs 102 crore in Q4FY15 on a yearly basis. The company’s net profit margin contracted by 798 basis points to 3.52 per cent in Q4FY15 as compared to same period in previous financial year.

Considering yearly results, ACC’s cement sales volume stands at 23.62 million tonnes with 2.44 per cent degrowth in FY15. The company’s revenue remained flat and increased by 0.5 per cent to Rs 11797 crore in FY15 as compared to previous fiscal year. Its EBITDA also raised by 1.6 per cent to Rs 1537 crore on a yearly basis. However, ACC’s other income reduced by 53.33 per cent to Rs 120 crore in FY15 as compared to previous fiscal year. ACC’s net profit decreased by 49.42 per cent to Rs 588 crore in FY15 on a yearly basis.

On segmental revenue front, ACC earned 91.77 per cent from cement segment and remaining 8.23 per cent from ready mix concrete segment during December 2015 year.

The share price of ACC declined by 2.74 per cent on bourses in early trades on Thursday; and is trading at Rs 1240.25 on intraday basis.

ACC is engaged in the manufacturing and selling of cement and ready mix concrete. The company offers various cement products, such as ACC-Gold, ACCF2R, ACC Plus and ACC Coastal+. It offers various concrete products, such as permecrete, stampcrete and imprincrete, ready to use mortar, thermocrete and hi-densecrete, which have lower environmental footprint.