The shares of cement maker ACC Limited jumped nearly five percent on Wednesday after the firm reported a strong performance for the third quarter ended September 30, 2021.
It jumped 4.83 percent to Rs 2,354 on the BSE and gained 4.75 percent to Rs 2,349.45 on the NSE.
The cement maker, which follows the January-December financial year cycle, on Tuesday reported a 23.74 percent jump in its consolidated net profit to Rs 450.21 crore for the third quarter ended September 30, 2021, on a year-on-year basis. This exceeds Street estimates as a CNBC-TV18 poll had predicted the net profit to be around Rs 420 crore.
Brokerage firm CLSA maintained a ‘buy’ rating on the ACC stock with a target of Rs 2,765. It noted that the company’s Q3 result is slightly better than estimates and that full cost-inflation results are expected to reflect in CY22. The benefits of master supply agreement (MSA) and cost-saving initiatives are evident from the result, it added.
The company’s total revenue from operations rose 5.98 percent to Rs 3,749 crore, which is slightly less than the expected growth of seven percent. Net sales during the quarter increased to Rs 3,653 crore, a growth of five percent against the same quarter the previous year, the firm said.
ACC Managing Director and CEO Sridhar Balakrishnan said, "The company has recorded solid performance during the quarter through operational excellence and focus on sustainability while meeting customers' needs."
The ACC stock was up 1.81 percent trading at Rs 2,283.30 on the National Stock Exchange (NSE) at 12:53 pm.