ACC: A sharp turnaround - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

ACC: A sharp turnaround

Oct 31, 2001

Associated Cement Companies (ACC) has once again reported an impressive quarterly result. The company is back in the black with a net profit of Rs 170 m on the back of a 6.3% rise in sales and a sharp rise in operating margins.

(Rs m) 2QFY01 2QFY02 Change
Sales 5,866 6,238 6.3%
Other Income 244 353 44.8%
Expenditure 5,286 5,333 0.9%
Operating Profit (EBDIT) 580 905 56.0%
Operating Profit Margin (%) 9.9% 14.5%  
Interest 424 350 -17.3%
Depreciation 355 352 -0.9%
Profit before Tax 45 555  
Extraordinary item (200) (250) 25.0%
Tax - 135  
Profit after Tax/(Loss) (155) 170  
Net profit margin (%) -2.6% 2.7%  
No. of Shares (eoy) (m) 170.9 170.9  
Diluted number of shares 170.9 170.9  
Earnings per share (Rs)* (3.6) 4.0  

The company has sold 2.6 Million Tonnes (MT) of cement in the quarter ended September 30, 2001 as compared to 2.5 MT in the corresponding quarter of the previous year, a growth of 4%. Favorable cement prices thanks to the cartelisation effect has resulted in higher value growth for the company in the second quarter also. The company's thrust on improving efficiency seems to have paid-off and is vindicated by the sharp rise in operating margins in the aforesaid quarter. Margins have gone up from 9.9% in 2QFY01 to 14.5% in 2QFY02. Lower interest and depreciation costs have also resulted in a sharp jump in profits at the pre-tax levels.

Due to write-off of dimunition in the value of assets and other adjustments, profits at the net level have come down. The scrip is currently trading at Rs 132 on a P/E multiple of 33.2x annualised 2QFY02 earnings.

Equitymaster requests your view! Post a comment on "ACC: A sharp turnaround". Click here!


More Views on News

ACC Announces Quarterly Results (4QFY20); Net Profit Down 6.4% (Quarterly Result Update)

Apr 24, 2020 | Updated on Apr 24, 2020

For the quarter ended March 2020, ACC has posted a net profit of Rs 3 bn (down 6.4% YoY). Sales on the other hand came in at Rs 35 bn (down 10.7% YoY). Read on for a complete analysis of ACC 's quarterly results.

ACC Announces Quarterly Results (3QFY20); Net Profit Down 63.2% (Quarterly Result Update)

Feb 10, 2020 | Updated on Feb 10, 2020

For the quarter ended December 2019, ACC has posted a net profit of Rs 3 bn (down 63.2% YoY). Sales on the other hand came in at Rs 41 bn (up 4.2% YoY). Read on for a complete analysis of ACC 's quarterly results.

ACC LTD 2017-18 Annual Report Analysis (Annual Result Update)

Mar 5, 2019 | Updated on Mar 5, 2019

Here's an analysis of the annual report of ACC LTD for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of ACC LTD. Also includes updates on the valuation of ACC LTD.

More Views on News

Most Popular

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

I Believe These Stocks Will Deliver the Most Outsized Returns in 2021 and Beyond (Profit Hunter)

Sep 23, 2020

Rules of the racetrack can help you bag the biggest gainers of the coming decade.


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 30, 2020 (Close)