Rapid expansion by ACC with continued focus on cost reduction and sustainability
January – March Quarter 2022
- Ametha project progressing ahead of schedule to add 5 MTPA capacity, commissioning of integrated unit expected in Q4 2022
- Tikaria grinding unit with 1.6 MTPA capacity commissioned in Feb 2022, project executed in 9 months
- Waste heat recovery projects at Jamul and Kymore plants on track; Board further approves next phase of projects at Chanda and Wadi plants. Total capacity will reach 75 MW
- Green Concrete “ECOPact” continues to deliver strong performance
- EBITDA at ₹ 635 Crore declined 26% vs previous year due to significant fuel cost increase despite project ‘Parvat’ delivering strong internal efficiencies
Consolidated Financial Results for First Quarter (January-March 2022)
|Sales Volume – Cement||Million Tonnes||7.71||7.97|
|Sales Volume – Ready Mix Concrete||Million Cubic metres||0.87||0.83|
|Net Sales||₹ Crore||4,322||4,213|
|Operating EBIT||₹ Crore||481||717|
|Operating EBIT Margin||%||11.1%||17.0%|
|Profit before tax||₹ Crore||532||754|
|Profit after Tax||₹ Crore||396||563|
“ACC’s focussing on capacity growth, delivering cost reduction and sharp actions on sustainability has continued. Our execution capabilities to drive efficiencies and commission new projects have enabled us to make ACC significantly stronger.
The January to March 2022 quarter was impacted due to the global rise in fuel costs driven by the overall geopolitical situation. Our efficiency and cost reduction actions under project ‘Parvat’ remained very strong and helped us partially offset the impact. The new investments in waste heat recovery systems will help us mitigate the energy cost inflation while also strengthening our sustainability actions.
ACC has been a pioneering brand with a history of ‘Category first’ innovations that have gone on to set new benchmarks. Our Green Concrete “ECOPact” is now 17% of the total Readymix sales. We have further expanded our ECO friendly product portfolio by launching a new climate control concrete insulation system ‘AIRIUM’ during the quarter.
The India story remains intact. Our ongoing initiatives on growth, sustainability and productivity improvements will continue as we progress on the consequent execution of our strategy.”- said Sridhar Balakrishnan, Managing Director and CEO.
Covid 19 Update
Health and Safety continues to remain our key priority. Strict adherence to government guidelines and Covid appropriate behavior are ensured across our locations. We continue to monitor the situation and take proactive steps to build a safe and healthy working environment.
- Net Sales during the quarter increased by 3% to ₹ 4,322 Crore compared to ₹ 4,213 Crore last year
- Profit after tax at ₹396 Crore, 30% lower vs previous year
- Our efficiency project ‘Parvat’ helped deliver 1% lower per ton Freight & Forwarding cost despite fuel inflation
- Strict cost control measures enabled reduction in fixed cost vs previous year
We are confident that the demand situation will further improve in the coming months supported by an improving domestic economic environment and various initiatives from the Government in terms of increased spending on infrastructure development.