ACC (ACC) Q4 2013 earnings summary

Executive summary

• Consolidated 2013 revenue was ₹11,388.55 crore, down 2% YoY; PAT rose to ₹1,094.67 crore from ₹1,059.28 crore, while PBT fell to ₹1,213.64 crore from ₹1,440.99 crore.

• Standalone cement sales volume edged down 1% to 23.93 million tonnes and operating EBITDA fell 26% to ₹1,628.79 crore amid weak demand and inflationary input costs.

• Cost and operating-efficiency initiatives, premium-product growth and a sharp RMX turnaround helped counter the difficult market environment.

Financial highlights

• Standalone net sales were ₹10,908 crore versus ₹11,130 crore; operating EBITDA was ₹1,629 crore versus ₹2,196 crore, and PAT was ₹1,096 crore versus ₹1,061 crore.

• Standalone revenue from operations fell 2% to ₹11,168.94 crore; profit before exceptional items and tax declined to ₹1,226.96 crore from ₹1,786.87 crore.

• Consolidated tax expense included a ₹216.74 crore write-back of prior-year tax provisions, supporting higher PAT despite lower PBT.

Outlook and guidance

• Cement demand was expected to grow 4%–5% in 2014; growth could exceed 5% if infrastructure investment improves, while excess capacity was expected to persist, particularly in the South.

• Gradually improving economic activity was anticipated from mid-2014; lower inflation and fiscal deficits were expected to ease interest rates and support housing demand.

• Jamul project completion was scheduled in phases by mid-2015; the new clinkering line has 2.79 MTPA capacity and the grinding facility 1.10 MTPA.