ACC’s net falls near 60% in Dec quarter

ACC, an Adani Group company, posted a 59.7% fall in consolidated net profit to Rs 113.19 crore for the quarter ended December, impacted by higher fuel and raw material costs. It had posted a net profit of `280.85 crore a year ago.

The company’s revenue from operations rose 7.36% to `4,536.97 crore from `4,225.76 crore a year ago. It had posted a net loss of `87.32 in the September quarter, ACC said in a statement.

A consensus estimate of Bloomberg analysts was expecting the consolidated net profit at `149.50 crore (5 brokers) on revenue of `4,509.60 crore (10 brokers).

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The cement manufacturer follows a January-December financial year, but has proposed to change it to April-March following its acquisition by the Adani group.

“Higher demand for cement due to a pickup in construction activities, reduction in fuel and logistics costs, improvement and expansion of our dealer network helped us to clock a robust sequential growth in our topline and margins. With the rise in construction activities across our markets, we see the continuation of the elevated demand and strong volumes in the coming quarters as well,” Ajay Kapur, whole time director & CEO at ACC, said.

While fuel costs are on a declining curve, Ebitda was lower y-o-y due to higher fuel cost compared to last year. Fuel cost is expected to further reduce in the coming months through synergies with the group.

“During the quarter, alternative fuels and raw material consumption volume rose 33% due to various debottlenecking initiatives and strong focus on cost optimisation. We successfully commissioned Waste Heat Recovery projects at Kymore and Jamul, while Ametha integrated unit expansion will be completed by the Q2 of FY24,” Kapur added.

The company’s business initiatives are expected to further bring down operating cost, reduce clinker factor, reduce logistics cost, improve sale of blended cement and expand Ebitda margin, the statement said.

Ready mixed concrete  and construction chemicals businesses are stable, showing a positive uptrend due to the improved market demand, it added.