ACC posts positive net profits; stock opened on hopes

Cement giant, and Holcim India promoted ACC has posted its Q2CY16 results wherein its revenues have dropped slightly while net profits have boomed on both YoY and QoQ basis. Recently, the government gave approval to Holcim’s plan for restructuring India’s business that has paved way for ACC to become subsidiary of Ambuja Cements.

The stock of ACC kicked off on a positive note on July 26 ahead of results but closed flat. The stock is currently hovering near its 52 week high of 1718 levels.

ACC’s quarter on quarter consolidated revenues have dropped 2 per cent to Rs 2869.84 crores in Q2CY16 from Rs 2927.38 crores. However, EBITDA has seen a growth of 5.5 per cent to Rs 457.56 crores from Rs 433.59 crores in the previous quarter.  Growth in EBITDA was driven by lower direct costs specifically Power & Fuel expenses and Other expense. Net profits have grown 5.4 per cent to Rs 239.12 crores in Q2CY16 as against Rs 226.95 crores in the previous quarter.

Year on year revenues too dropped 1.1 per cent from Rs 2961.21 crores posted during corresponding quarter of the previous year. Net profits have soared 70.1 per cent from Rs 133.26 crores in Q2CY15.

ACC deals in manufacturing of cement and ready mixed concrete. The Company has approximately 17 cement factories, approximately 21 sales offices and various zonal offices. The company has over 50 ready mixed concrete plants in various cities.