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ACC: Sales flat, profits plummet - Views on News from Equitymaster
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ACC: Sales flat, profits plummet
Oct 28, 2015

ACC has announced its financial results for the third quarter of the calendar year 2015. During the quarter ended September 2015, while the company's standalone sales reported flat growth, the net profit plummeted 42.9% YoY respectively. Here is our analysis of the results:

Performance summary

  • On a standalone basis, net sales reported flat growth during the quarter as cement volumes remained flat.
  • Operating profit decreased by 13.8% YoY; EBITDA margin contracted from 11.2% in 3QCY14 to 9.6% in 3QCY15.
  • Net profit decreased by 42.9% YoY during the quarter.

Standalone financial performance snapshot

(Rs m) 3QCY14 3QCY15 Change 9MCY14 9MCY15 Change
Net sales 27,419 27,400 -0.1% 87,180 85,867 -1.5%
Expenditure 24,359 24,762 1.7% 76,467 76,297 -0.2%
Operating profit (EBITDA) 3,060 2,638 -13.8% 10,713 9,569 -10.7%
EBITDA margin 11.2% 9.6%   12.3% 11.1%  
Other income 1,214 678 -44.2% 4,079 3,990 -2.2%
Depreciation 1,393 1,607 15.3% 4,136 4,962 20.0%
Finance cost 157 150 -4.6% 697 519 -25.5%
Profit before tax & exceptional items 2,723 1,559 -42.8% 9,959 8,079 -18.9%
Exceptional gain/ (loss) - -   - (1,532)  
Profit before tax 2,723 1,559 -42.8% 9,959 6,547 -34.3%
Tax 674 389 -42.4% 1,513 1,657 9.6%
Effective tax rate 24.8% 24.9%   15.2% 25.3%  
Profit after tax 2,049 1,170 -42.9% 8,447 4,890 -42.1%
Net profit margin 7.5% 4.3%   9.7% 5.7%  
No of shares (m) 187.7 187.7   187.7 187.7  
Diluted EPS (Rs)*         43.3  
P/E (times)         31.9  

*trailing twelve month earnings

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