ACC's Q1 FY25 financials show strong cash flow, but concerns arise over profitability

ACC, one of the leading cement companies in India, has recently declared its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Buy’ call by MarketsMOJO, indicating positive prospects for investors.

Despite a flat financial performance in the quarter, ACC has shown strong operating cash flow, with the highest annual cash flow of Rs 2,995.11 crore in the last three years. This is a positive sign for the company, as it indicates that it has been able to generate higher cash revenues from its business operations.

However, there are some areas that need improvement for ACC based on its financials. The company’s Profit After Tax (PAT) for the quarter has fallen by 31.4% compared to the average PAT of the previous four quarters. This is a cause for concern, as it shows a negative trend in near-term profitability. Similarly, the Profit Before Tax (PBT) has also fallen by 18.6% compared to the average PBT of the previous four quarters, indicating a negative trend in near-term profitability.

The company’s Earnings per Share (EPS) for the quarter is also at its lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders. Additionally, the Dividend Payout Ratio (DPR) for the year is at its lowest in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, while ACC has shown some positive aspects in its financials, there are also areas that need improvement. Investors should carefully consider these factors before making any investment decisions.