ACC (ACC) Q4 2012 earnings summary

Executive summary

• 2012 cement sales volume rose 2% to 24.11 million tonnes; operating EBITDA increased 14% to ₹2,196 crore, while consolidated PAT fell to ₹1,059 crore from ₹1,301 crore.

• Cost leadership and customer value initiatives targeted manufacturing, logistics, procurement and sales; Jamul expansion work began, with completion planned in phases by 2015.

Financial highlights

• Consolidated revenue from operations and other income rose 11% to ₹11,621 crore; consolidated PBT was ₹1,441 crore vs ₹1,505 crore, and PAT was ₹1,059 crore vs ₹1,301 crore.

• Standalone net sales reached ₹11,130 crore vs ₹9,430 crore; operating EBITDA was ₹2,196 crore vs ₹1,921 crore. Results are not strictly comparable after subsidiary amalgamations.

• Standalone PBT before exceptional item and tax rose to ₹1,787 crore from ₹1,540 crore; reported PAT declined to ₹1,061 crore from ₹1,325 crore.

• Operating cash flow was ₹1,577 crore; cash and cash equivalents were ₹3,037 crore at year-end.

Outlook and guidance

• 2013 cement demand was expected to improve with a recovery in investment, lower interest rates and stronger housing, infrastructure and industrial activity; a normal monsoon was also seen as supportive.

• Jamul expansion, estimated at ₹3,300 crore and funded from internal accruals, targets 5 million tonnes of annual cement capacity, with phased completion in 2015.

• RMX outlook was stable, with demand expected from Mumbai, Gurgaon and Bengaluru; pricing was expected to remain under pressure from competition.