New Delhi: The consolidated net profit of cement maker ACC dropped 6 percent to Rs 323 crore for the fourth quarter of the 2019-20 financial year as compared to the same period of the previous fiscal. The net profit of the company in the corresponding quarter was Rs 346 crore.
The net sales of the company declined 10 percent to Rs 3,433 crore for the fourth quarter of the 2019-20 financial year as compared to the same period of the previous fiscal. The net sales of the company in the corresponding quarter was Rs 3,850 crore, the compnay said in a statement.
“Until February 2020 Cement and Ready Mix Concrete volume benefitted from a healthy growth. Despite COVID-19 impacting operations in the month of March, we have delivered a double digit growth in EBITDA for the first Quarter of 2020 compared to same period last year. This growth has been supported by significant focus on premium products, increase in value added solutions in our Ready Mix business and results of cost reduction exercise in manufacturing and logistics. “ said Sridhar Balakrishnan, Managing Director & CEO, ACC.
ACC saw weaker off take in the fourth quarter due to the nationwide lockdown. The cement sales volumes dropped by 12 percent in this quarter as compared to the same period previous year. Operating EBITDA for the fourth quarter went up by 10 percent to Rs 586 crore as against Rs 532 crore during the same quarter of the previous year.
The company is working on enhancing operational efficiencies and reducing costs. It is also trying to improve productivity. The Input cost of raw materials were lower in the fourth quarter because of better material source mix optimization and higher supply chain efficiencies.
There was good growth witnessed in ready mix concrete business but he volumes declined due to the lockdown. Two new cement plants were commissioned in the fourth quarter, taking the total number of ready-mix concrete plants to 92.