80 th Annual Report Analysis of ACC Limited (2015)
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80th Annual Report Analysis of ACC Limited
(2015)
ABOUT THE COMPANY
• India’s foremost cement manufacturer with a countrywide network of factories and marketing offices.
• Established in 1936 as “The Association of Cement Companies Limited”, hence the name ACC Ltd. (After 2006).
• ACC has been a pioneer and trend-setter in cement and concrete technology.
•First Cement Company to get Super brand status in India.
•Includes 16 modern cement factories, more than 50 Ready mix concrete plants.
• ACC is now part of the worldwide Lafarge-Holcim Group.
ABOUT THE INDUSTRY
• India is the second-largest cement producing country in the world after China.
• The Indian cement industry is globally competitive with lowest energy consumption and CO2 emissions.
• Several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have invested in the country in the recent past.
• The industry exports cement and clinker to around 30 countries across the globe.
CUSTOMER EXELLENCE
• ACC offers superior products, superior logistics & superior service.
• ACC also conducted technical seminars, new product innovation and provides premium products with tamper-proof packaging.
• Tools like Net Promoter Score (NPS) & the E3 model (Economic, Emotional & Ego) help gauge dealer satisfaction & understands their needs.
COST & PROFIT AS A PERCENTAGE OF REVENUE FROM OPERATIONS
FINANCIAL DETAILS1. Paid up Capital (INR)- Rs. 187.95cr2. Total turnover (INR)- Rs. 11432.46cr3. Total PAT (INR)- Rs. 591.57cr4. Total spending on CSR Activities-
2.23% of Avg. Net Profit in previous 3 financial years
(ACC-DISHA,ACC-Sanrakshita paryavaran,ACC-Sampoorna swacchata)
PERFORMANCE HIGHLIGHTS
DIFFERENT RATIOSRATIOS 2015 2014
LIQUIDITY RATIO
Current Ratio 0.88:1 0.96:1Acid Test Ratio 0.55:1 0.62:1
SOLVENCY RATIO
Earning per Equity Share 31.51 cr 62.23 cr
PROFITABILITY RATIO
Net Profit Ratio 8.20% 9.88%Return on Assets 5.17% 10.18%
EFFICIENCY RATIO
Inventory Turnover Ratio 0.29 2.84Asset Turnover Ratio
1.5 1.5Working Capital Turnover Ratio 3.97 13.44
ANALYSIS• Current ratio is 0.88:1 means
ACC is facing problems in payment of current debts. If we compare it with 2014, the CA of the company are reducing & CL are increasing.
• An acid ratio of 0.54 shows that the company has 0.44 times less quick assets than current liabilities. The quick asset got reduced from 2014 to 2015.
• Earning per share has been reduced from 2014 to 2015. this means ACC is bearing a loss.
• Net profit reduce from 2014 to 2015. Hence, the products are not generating profits.
• The return on assets is also very less. This means company is not effectively managing its assets to produce greater amounts of net income.
• Net Assets of the company increases. But Asset turnover ratio, inventory turnover ratio & Working capital turnover ratio have very less value. This means ACC is facing difficulties in selling its products.
THANK YOU !!
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