ACC Q3 profit at Rs 472 crore as cement demand picks up

Cement manufacturer ACC Ltd said on Thursday its profit after tax rose to Rs 472 crore in the October to December quarter as compared to Rs 273 crore in the same quarter of previous fiscal.

Net sales during the quarter increased to Rs 4,066 crore compared to Rs 3,970 crore in Q3 FY20.

The operating earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter registered year-on-year growth of 30 per cent at Rs 701 crore with a margin expansion of 360 basis points.

Last month, the company commissioned its new grinding unit at Sindri in Jharkhand with a cement capacity of 1.4 million tonnes per annum. This growth project is expected to strengthen its position in the eastern region.

The board of directors recommended payment of final dividend at Rs 14 per share of Rs 10.

Sridhar Balakrishnan, Managing Director and CEO, said ACC is encouraged by the government's increased spending on infrastructure development, particularly roads, railways, affordable housing and other schemes as announced in the recent Union Budget.

"We are optimistic and maintain a positive outlook that the government's timely and pro-active measures will open up more opportunities for the cement sector which will stimulate cement demand and enhance economic growth," he said in a statement.

ACC, a member of the LafargeHolcim Group, is one of India's leading producers of cement and ready-mix concrete. It has 6,500 employees, 17 cement manufacturing sites, 80 concrete plants and a nationwide network of over 50,000 retail outlets.

( With inputs from ANI )