ACC (ACC) Q4 2015 earnings summary

Executive summary

• 2015 revenue from operations (net) rose 0.5% to ₹11,796.83 crore standalone, but PAT fell to ₹591.57 crore from ₹1,168.29 crore amid lower cement volumes, higher depreciation and the prior-year tax benefit.

• Ready Mixed Concrete growth partly offset weaker cement volumes; the Jamul and Sindri expansion was nearing completion, with commissioning expected in Q2 2016.

Financial highlights

• Standalone operating EBITDA was ₹1,537 crore versus ₹1,507 crore; operating EBITDA margin remained 13%.

• Standalone PBT before exceptional items and tax was ₹937.14 crore versus ₹1,135.20 crore; reported PBT was ₹783.97 crore and PAT ₹591.57 crore.

• Consolidated revenue from operations (net) was ₹11,797.16 crore versus ₹11,738.79 crore; consolidated PAT was ₹587.60 crore versus ₹1,161.82 crore.

• Standalone EPS was ₹31.51 versus ₹62.23; consolidated EPS was ₹31.30 versus ₹61.88.

• Other operating revenue included a ₹139.74 crore accrual of sales-tax incentives for August 2005–March 2015 following a favorable Jharkhand High Court order.

Outlook and guidance

• Cement demand in 2016 was expected to grow faster than 2015; consumption could exceed 6% growth if infrastructure, housing and industrial investments accelerated.

• Jamul and Sindri expansion was nearing completion, with commissioning expected in Q2 2016; plans include a 2.79 Mtpa clinker line and grinding facilities at both sites.

• RMX planned to extend its reach into promising markets, with growth anticipated across housing, infrastructure, commercial and industrial projects.