ACC has reported a dip of 7 per cent in its net consolidated profit during the January-March 2020 quarter, according to its BSE filing. Its profit aftr tax (PAT) stood at Rs 323 crore crore as against Rs 346 crore it recorded in Q1 FY19.
The company’s net income stood at Rs 3,557.63 crore in Q1 FY20, a dip of 13 per cent from Rs 4,075.71 crore it recorded in the similar quarter last year.
“Until February 2020 Cement and Ready Mix Concrete volume benefitted from a healthy growth. Despite COVID-19 impacting operations in the month of March, we have delivered a double digit growth in EBITDA for the first Quarter of 2020 compared to same period last year.
This growth has been supported by significant focus on premium products, increase in value added solutions in our Ready Mix business and results of cost reduction exercise in manufacturing and logistics,” said Sridhar Balakrishnan, managing director & CEO of the company.
ACC’s plants and offices are under nationwide lockdown since March 24, 2020. As a result of lockdown the volumes for the month of March 2020 has been impacted. The company is monitoring the situation closely and will resume operations in a phased manner taking into account directives from the government, it said in the regultory filing.
We expect cement demand to increase in the medium term once the pandemic subsides and business operations
commence,” added Balakrishnan.
According to its regualtory filing, the Provident Fund of ACC (Trust) had invested Rs 49 crore in perpetual bonds of IL&FS Financial Services. In view of uncertainties regarding recoverability of this investment, during the previous year ended December 31, 2019 the Company provided Rs 49 crore being the change in re-measurement of the defined benefit plans, in Other Comprehensive Income towards probable incremental employee benefit liability that may arise on the Company on account of any likely shortfall of the Trust in meeting its obligations.