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    ACC Sept quarter earnings beats estimates; net profit jumps 20% to Rs 363 crore

    ACC Sept quarter earnings beats estimates; net profit jumps 20% to Rs 363 crore

    ACC Sept quarter earnings beats estimates; net profit jumps 20% to Rs 363 crore
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    By Ankit Gohel   IST (Updated)

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    Cement maker ACC Ltd reported a 20.26 percent rise in the September quarter net profit at Rs 363.85 crore as against a net profit of Rs 302.56 crore in the corresponding quarter of the previous financial year. Net profit beat CNBC-TV18 analysts' poll estimates of Rs 310 crore.

    Cement maker ACC Ltd reported a 20.26 percent rise in the September quarter with net profit at Rs 363.85 crore as against Rs 302.56 crore in the corresponding quarter of the previous financial year. Net profit beat CNBC-TV18 analysts' poll estimates of Rs 310 crore.
    The company follows a January-December financial year.
    Revenue during the quarter increased marginally to Rs 3,537.3 crore from Rs 3,528.31 crore, YoY. Revenue was also higher than the CNBC-TV18 poll of Rs 3,450 crore.
    EBITDA in the September quarter rose 20.5 percent to Rs 671.4 crore from Rs 557.1 crore while EBITDA margin expanded by 320 bps to 19 percent from 15.8 percent, year on year.
    The company said efficiency and cost-reduction drove EBITDA margin expansion during the quarter and focus on premium products enabled net sales growth of 4 percent in cement over the previous year.
    "Despite COVID-19 headwinds, the Indian economy is witnessing early signs of recovery. At ACC, this recovery has been reflected in our Q3 results, where our volumes and sales have bounced back to prior-year levels. Our efficiency and cost-reduction plans have helped drive significant margin expansion during the quarter. We continue to manage working capital effectively resulting in healthy cash flow delivery," said Sridhar Balakrishnan, Managing Director & CEO, ACC.
    The company's focus continues to remain on ‘Health, Cost and Cash’. It has resumed operations at all locations following mandated safety protocols to ensure health and safety of its employees and the communities, he added.
    "With our efficiency programmes in place, supported by a team with a high level of preparedness, I am confident of ACC delivering a strong performance going forward," Balakrishnan added.
    The company believes expects the government's thrust on infrastructure development, increased spending through measures aimed at reviving the rural economy and a sharper focus on the affordable housing segment to drive strong resurgence of cement demand and bring growth opportunities for the cement sector going forward.
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