Feb 15 2018 | Focus

Cement Sales Volume registers 14 per cent increase in 2017

”ACC registered robust revenue growth across categories and geographies, with an increased focus on premium products and a targeted approach to customers and markets, delivering strong top-line growth. ACC's strategy remains focused on fundamental value drivers which reflect our priorities to support our customers and deliver attractive returns for our shareholders. Our performance over the last four quarters demonstrates our ability to remain ahead of the market challenges that have partially impacted both costs and the development of our markets.  We will continue to focus on cost improvements, profitable revenue growth and innovations that create new value." said Neeraj Akhoury, Managing Director & CEO.

ACC Ltd, a member of the LafargeHolcim Group, is one of India’s leading producers of cement and ready mixed concrete. It has over 7800 employees, 17 cement manufacturing sites, 57 concrete plants and a nationwide network of over 50,000 retail outlets to serve its customers.  With a world-class R&D centre in Mumbai, the quality of ACC’s products and services, as well as its commitment to technological development, make it a preferred brand in building materials. Established in 1936, ACC is counted among the country’s 'Most Sustainable Companies' and it is recognized for its best practices in environment management and corporate citizenship.

Highlights 2017

 

·         Profitbefore tax rose by 48%

·         OperatingEBITDA surged by 29%

·         CementSales volume increased by 14%

·         Readymix concrete volume up by 11%


Highlights 2017

 

·         Profitbefore tax rose by 48%

·         OperatingEBITDA surged by 29%

·         CementSales volume increased by 14%

·         Readymix concrete volume up by 11%

 

Consolidated Financial Results for Q4 and YearEnded December 31, 2017

 

 

Quarter

Oct-Dec

2017

Quarter

Oct-Dec

2016

Year

Jan-Dec 2017

 

Year

Jan-Dec

2016

 

Sales Volume – Cement

Million Tonnes

6.92

5.45

26.21

22.99

Sales Volume – Ready mix Concrete

Million Cubic metres

0.80

0.67

2.88

2.59

Net Sales

Crore

3,417

2,625

12,909

10,772

Operating EBITDA

Crore

443

287

1,912

1,478

Profit before Tax

Crore

301

96

1,310

885

Profit after Tax

Crore

206

91

925

658

 


Financials
Net Sales during the quarter surged 30% to Rs.3,417crore compared to  Rs.2,625 crore for the same quarter last year. Operating EBITDA for the quarter registered a growth of 54% to  Rs.443crore as against  Rs.287 crore during the previous year’s quarter despite sharp cost headwinds. Operating EBITDA for the full year 2017 was  Rs.1,912 crore as compared to Rs.1,478 crore in the previous year, an increase of 29%.

Cement Business
The cement business grew volumes by 27% during the quarter on YoY basis, as a result of a stronger focus on premium products and improved customer service levels, despite challenges such as sand availability constraints and subdued urban housing trends due to RERA compliance.

The quarter was impacted by an increase in cost of imported coal and petcoke, slag prices, limited availability of linkage domestic coal forcing a shift to costlier fuel sources, and the ban on petcoke usage in NCR States. Despite this, our determination to optimise costs and improve productivity, enabled operating costs to remain at par with the previous year.

Fixed costs and Selling General & Administrative Expenses (SG&A) were maintained at the same level, while SG&A as a percentage of net sales was lower on a YoY basis

Ready Mix Concrete
The company’s ready mixed concrete sales volumes grew substantially by 19% during the quarter as a result of focusing on the infrastructure, commercial and realty segments. Volumes also grew thanks to a higher share of customized concrete solutions and increased sales of value-added special products.

Dividend
The Board of Directors has recommended payment of final dividend at Rs.15/- per share of  Rs.10/- aggregating to  Rs.339.02/-crore (including tax on dividend). The total dividend for the year 2017(including the interim dividend of  Rs.11/- per share), adds up to  Rs.26/- per share aggregating to Rs.587.64/- crore (including tax on dividend).

Outlook
The announcements in Budget 2018 indicate the government's thrust on infrastructure development and increased rural spending through measures aimed at reviving the rural economy. The significant increase in the budgetary outlay for infrastructure development which includes railways, roads, highways and irrigation projects, the investment in smart cities and a sharper focus on the affordable housing segment is expected to drive growth during 2018. As India continues on a sustained growth trajectory, cement as a core sector will benefit from the country’s growth.

*Facts and figures provided by ACC Ltd in a press release