In an environment where cement companies have posted sharp declines in operating margins, ACC Limited, one of India's largest cement companies, has posted a sharp rise. The company has attributed this to the effective implementation of cost cutting measures and the commissioning of captive power plants.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Diluted number of shares
During the quarter the company sold (excluding traded cement) 2.3 million tonnes of cement, reflecting a YoY rise of 5.8%. Including traded cement, however, sales jumped 8%, as against the industry growth rate of 4% during the quarter.
If the extraordinary expense is ignored, the company has also posted a YoY increase in net profits. This expense pertains to the write down in the value of certain assets and investments.
We have projected a full year loss of Rs 783 m for ACC. However, in view of the faster than anticipated rise in the operating margins, we will be relooking at our estimates.
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