Cement manufacturer ACC posted a consolidated net loss of Rs 87.32 crore for the quarter ended September 30, impacted by cost pressures due to steep rise in fuel prices. The net loss came as a surprise as analysts were expecting the company to post a net profit of Rs 220.60 crore.

In comparison, the company had posted a net profit of Rs 450.21 crore during the same period a year ago. The firm, which was acquired by the Adani Group, has also terminated its agreement with Holcim for payment of technology fees at 1% of eligible net sales, effective September 16.

During the three-month-period under review, the company’s net sales rose 7.03% to Rs 3,910 crore from Rs 3,653 crore posted during the same period of last financial year. The company’s Ebitda for the quarter fell to Rs 16 crore from Rs 712 crore recorded during the same quarter of last year. Analysts were expecting the firm to post a net profit of `450.21 crore on revenue of Rs 4,164.20 crore.

“We have had significant cost pressures in the recent past due to steep fuel price rise. However, recent cooling off in energy costs will impact us positively in the coming quarters,” said ACC whole time director and CEO B Sridhar, adding the post-monsoon quarter will see the traditional rebound for the cement sector, including for ACC.

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In September, ACC board approved changing of its financial year end from December 31 to March 31. Accordingly, the current financial year has been extended by three months to end on March 31, 2023.

“During the quarter, ACC recorded strong growth in RMX (ready mix concrete) volume of 10% and RMX business remains a huge growth engine for future. We have aggressive growth plans and our capacity expansion initiative through our new greenfield projects at Ametha is progressing well and is expected to be commissioned by March 2023,” he added.

During the quarter, ACC’s cement volume grew by 4% from the same quarter of last year. For the quarter and nine months ended September 30, 2022, the firm recorded an exceptional item expense of `16.25 crore towards special incentives for certain key employees pursuant to change in the ownership and control.

Earlier on September 15, Endeavour Trade and Investment (an entity of Adani family) completed the acquisition of the entire shareholding in Holderind Investments (intermediate holding company) from Holderfin BV (an entity of the Holcim Group).