ACC share price surges despite of 4 per cent decline in bottom line

ACC declared its first quarter results on April 28. The company follows calendar year as financial year for keeping books of accounts. Its consolidated revenue has declined by 2.91 per cent to Rs 2991 crore in Q1CY16. ACC’s cement sales volume rose by 9.29 per cent to 6.36 million tonnes in Q1CY16 on a yearly basis.

ACC’s EBITDA decreased by 28.86 per cent to Rs 434 crore in Q1CY16 as compared to same period in previous financial year. The company’s EBITDA margin contracted by 529 basis points to 14.5 per cent in Q1CY16 on a yearly basis. Its Net profit also reduced by 4.05 per cent to Rs 227 crore in Q1CY16 as compared to same period in previous fiscal year. ACC’s Net profit margin contracted by 9 basis points to 7.59 per cent in Q1CY16 on a yearly basis.

On segmental revenue front, ACC earned 90.96 per cent from cement segment and remaining 9.04 per cent from ready mix concrete segment during Q1CY16. The company’s premium cement segment continued to be promoted vigorously and their sales have registered an increase of 53 per cent during Q1CY16 as compared to the previous financial year.

The share price of ACC has increased 1.25 per cent on bourses in early trades and is trading at Rs 1451.45 on an 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.