A Year of Strong Performance by ACC; Fresh Capacity Expansions Commissioned

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Business Wire India   
Full Year 2021

● 40% increase in EBIT with margin expansion of 250 basis points
● Profit after Tax improved by 30% compared to the previous year
● Strong scaleup of Green Concrete ‘ECOPact’ in the first year of launch
 
October – December Quarter 2021

● EBIT at Rs.  396 Cr; adverse input inflation partly offset by strong cost savings
● Investments in Ametha expansion project progressing well

Consolidated Financial Results
 

    Quarter
Oct-Dec
2021
Quarter
Oct-Dec
2020
Year
Jan-Dec 2021
Year
Jan-Dec 2020
Sales Volume – Cement Million Tonnes 7.49 7.71 28.89 25.53
Sales Volume – Ready Mix Concrete Million Cubic metres 0.73 0.73 2.81 2.27
Net Sales Rs. Crore 4,137 4,066 15,814 13,487
EBITDA# Rs. Crore 556 572 2,998 2,355
EBITDA Margin % 13.4% 14.1% 19.0% 17.5%
Operating EBIT# Rs. Crore 396 414 2,397 1,716
Operating EBIT Margin % 9.6% 10.2% 15.2% 12.7%
Profit before exceptional items and tax# Rs. Crore
 
439
 
465
 
2,561
 
1,885
 
Profit after Tax Rs. Crore 281 472 1,863 1,430

#Including charge of Rs. 129 Cr in Q4’20 & Full Year 2020
 

“The year 2021 was a challenging one on many counts. The global economy witnessed major supply chain disruptions resulting in high inflation especially led by fuel costs. Cement demand was also muted during the quarter driven by multiple regional factors across India. Despite these challenges, ACC was able to deliver another year of strong performance. We delivered a sales growth of 17% during the year with an EBIT growth of 40%. Efficiency measures under Project ‘Parvat’ coupled with product premiumization initiatives have enabled to mitigate inflationary impacts and expand margins. With the launch of our Green products such as ‘ECOPact’ and the signing of Net Zero Pledge validated by SBTi$, we have further accelerated our Sustainability journey during the year. I am confident, with our upcoming capacity and efficiency projects, we will continue to deliver strong value for all our stakeholders,” said Sridhar Balakrishnan, Managing Director and CEO.

$SBTi: Science Based Target initiative
Covid 19 Update
 
Health and Safety continues to remain company’s key priority. Strict adherence to government guidelines and Covid appropriate behavior is ensured across the locations. Adequate infrastructure and medical support are made available to cater to any requirement that may arise. ACC teams continuously monitor the situation and take proactive steps to build a safe working environment. 99.9% of our employees and contract workers have already been fully vaccinated.

Performance
 
● Net Sales during the quarter increased to Rs. 4,137 Cr compared to Rs. 4,066 Cr last year
● EBITDA during the quarter at Rs. 556 Cr showed a decline of 2.8% vs previous year
● For the year, net sales increased to Rs. 15,814 Cr showing a growth of 17%
● Full year EBITDA improved by 27% at Rs. 2,998 Cr
● Free Cash Flow improved by 14% during the year, supported by strong working capital management with year end cash balance in excess of Rs. 7,000 Cr

Dividend
 
The Board of Directors has recommended payment of dividend at Rs. 58/- per share of Rs. 10/- aggregating to Rs. 1,089 Cr

Outlook
 
Our economy has witnessed a steady recovery during the last few quarters. The adverse impact on the economy of recurring Covid waves is gradually waning, driven by rising vaccinations and adaptation to the new normal. The Union Budget 2022 is likely to provide further impetus to India’s growth driven by the Government’s commitment to investment in infrastructure across the board,” said Sridhar Balakrishnan, Managing Director & CEO.