Cost Cuts Drive Growth

Cement manufacturer ACC bounced back to its pre-COVID-19 levels with 1 per cent growth in volumes during the third quarter (Q3) of Calendar Year (CY) 2020. Strong efficiency and cost reduction strategies saw a 17 per cent drop in the operating cost per ton of cement. The cost reduction was seen in power and fuel (21 per cent), employee (11 per cent) and freight and forwarding (9 per cent) Year-on-Year (Y-o-Y) in Q3 CY2020. Further, rural and retail sales led to a surge in demand. Net sales and Profit After Tax (PAT) clocked a Compound Annual Growth Rate (CAGR) of 7 per cent and 24 per cent respectively over CY2015-2019. ACC’s net sales remained flat at Rs 3,468 crore against last year’s Rs 3,464 crore, as sales volumes of Ready Mix Concrete (RMC) still remain under pressure due to slowdown in construction activities. Earnings Before Interest, Taxes, Depreciation and...