ACC (ACC) Q4 2014 earnings summary

Executive summary

• FY2014 consolidated income rose 5% to ₹11,995.42 crore and net sales increased 5.4% to ₹11,480.31 crore; PBT declined while PAT rose, including a ₹309.23 crore prior-year tax write-back.

• Cement volumes grew modestly as higher realizations supported sales; operating EBITDA and margin fell amid mining interruptions, higher freight and input costs.

Financial highlights

• Standalone revenue from operations, net, increased 5.28% to ₹11,738.21 crore; PBT fell to ₹1,135.20 crore from ₹1,226.96 crore.

• Standalone PAT was ₹1,168.29 crore versus ₹1,095.76 crore, including tax adjustments for earlier years of ₹309.23 crore versus ₹216.74 crore.

• Net cash from operating activities rose to ₹1,331.70 crore from ₹1,056.23 crore; investing outflow increased to ₹1,436.69 crore, mainly for Jamul and Sindri projects.

Outlook and guidance

• Cement demand was forecast to grow 6% in 2015, potentially faster with infrastructure investment; lower rates could support housing demand as economic activity improves.

• Jamul clinkering and grinding lines and the Sindri grinding station were expected to be commissioned in 2015; management expected cost initiatives, premium products and customer programs to aid performance.

• RMX demand was expected to revive in 2015, particularly in metro markets, supported by infrastructure and real estate development.