ACC’s woes continued throughout the year. It ended this fiscal with a total income of Rs 2,988.51 crore (Rs 2893.16 crore), only 3 per cent up from the previous year. The total spending went up 5 per cent to Rs 2,867.66 crore (Rs 2726.73 crore), net profit declined 27 per cent over the year-ago period to Rs 120.85 crore (Rs 166.43 crore).
Despite a 15 per cent increase in volumes, ACC’s net sales managed to rise by only 2 per cent over the previous year to Rs 2,877.41 crore (Rs 2,810.63crore). This was mainly on account of a 10 per cent decline in average sales realisation. Turnover of the refractory business was up by 6 per cent over the corresponding previous period. Compared with revenues, the increase in operational costs was higher in percentile terms. At Rs 2,584.90 crore (Rs 2,394.98 crore) it went up by 8 per cent over the corresponding previous period.
Except for the cost of purchased goods, which went down by 12 per cent, all other cost components were up compared with the previous year. Raw material consumption went up 8 per cent, while cost of coal, fuel and power was up 15 per cent.
Other expenditure went up 21 per cent, while the least to rise were the outward freight charges, which went up 2 per cent over the corresponding previous period. Operating profit was down by 30 per cent to Rs 292.51 crore (Rs 415.65 crore).
OPM too shrank to 10 per cent from the 15 per cent it had reported in the previous year. Other income at Rs 111.10 crore (Rs 82.53 crore) was up 35 per cent over the previous year, while interest at Rs 103.91 crore (Rs 146.71 crore) came down 29 per cent over the corresponding previous period.
Depreciation was up 9 per cent to Rs 164.56 crore (Rs 151.14 crore). Lower before tax profits saw the tax provisioning come down by 58 per cent to Rs 14.29 crore (Rs 33.90 crore). Extraordinary expense for the year was Rs 16.96 crore (Rs 36 crore).
ACC continues its poor quarterly performance with net sales declining, though only marginally, in the fourth quarter to Rs 744.52 crore (Rs 747.96 crore).
OPM has stagnated at 10 per cent for the past two quarters. However, cutting interest cost and a better other income has seen the profits improve.
The stock, currently trading at Rs 133, discounts its full year EPS of Rs 7.07 by 19 times. Extremely overpriced at the current growth rates.