Cement maker, ACC, which follows the Jan-Dec fiscal, for its first quarter ended 31st March 2021, reported a very good 74% (YoY) jump in net profit at Rs.563 crore on a 23% jump in net sales at Rs.4213 crore.
Better sale of premium products as well as lowering of costs led to the EBITDA margin expanding by a huge 450 bps. Its recently commissioned 1.4 million tonnes per annum (mtpa) Sindri grinding unit in Jharkhand helped boost cement sales volumes by 21%.
The demand for cement is so huge, especially in East and Central India, where ACC’s presence is very strong, that the company is racing against time to get the balance 4.8mtpa grinding unit and 2.7mtpa clinker planton stream by Q2. But given the current critical situation across the country with lockdowns and curfew, maybe this commissioning could get pushed onto Q3.
Given the robust demand, especially in its stronghold regions, its near 90% capacity utilization and higher realisations, ACC looks solid, built for the future.
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