ACC Announces Quarterly Results (2QFY21); Net Profit Up 21.3%

Thu, 22 Oct

ACC has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

ACC Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	35,283	26,022	35,373	35.9%	0.3%
Other income	Rs m	508	513	455	-11.3%	-10.4%
Turnover	Rs m	35,791	26,535	35,828	35.0%	0.1%
Expenses	Rs m	29,712	20,769	28,659	38.0%	-3.5%
Gross profit	Rs m	5,571	5,254	6,714	27.8%	20.5%
Depreciation	Rs m	1,512	1,627	1,608	-1.1%	6.4%
Interest	Rs m	163	131	160	22.6%	-1.5%
Profit before tax	Rs m	4,404	4,009	5,401	34.7%	22.6%
Tax	Rs m	1,409	1,322	1,768	33.8%	25.5%
Profit after tax	Rs m	2,995	2,687	3,633	35.2%	21.3%
Gross profit margin	%	15.8	20.2	19.0
Effective tax rate	%	32.0	33.0	32.7
Net profit margin	%	8.4	10.1	10.1

Year-on-Year Performance:

• The company's operating income during the quarter grew 0.3% on a year-on-year (YoY) basis. The expenses were down by 3.5% YoY during the same period.
• The company's operating profit increased by 20.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 19.0% in 2QFY21 as against 15.8% in 2QFY20.
• Depreciation charges increased by 6.4% and finance costs declined by 1.5% YoY, respectively.
• Other income declined by 10.4% YoY during the quarter.
• Net profit for the quarter increased by 21.3% YoY. Net profit margins during the quarter increased from 8.4% in 2QFY20 to 10.1% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 35.9% on a quarter-on-quarter (QoQ) basis. The expenses were up by 38.0% QoQ during the same period.
• The company's operating profit increased by 27.8% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 19.0% in 2QFY21 as against 20.2% in 1QFY20.
• Net profit for the quarter increased by 35.2% QoQ, while net profit margins increased from 10.1% in 1QFY20 to 10.1% in 2QFY21.

To see how ACC has performed over the last eight quarters,please visit here.

Mega Webinar on Jan 29th: Will 2021 be a boom or bust?

ACC Share Price Performance

Over the last one year, ACC share price has moved up from Rs 1,535.0 to Rs 1,610.0, registering a Gain of Rs 75.1 or around 4.9%.

Overall, the S&P BSE SENSEX is up 4.1% over the year.

Current Valuations

At the current price of Rs 1,610.0, the price to earnings (P/E) ratio of ACC stands at 24.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.6 times.