ACC back in black with profit at ₹388 cr in Q2, revenue rises 11.2 pc to ₹4,435 cr
Oct 26, 2023, 17:13 IST
Cement maker ACC Ltd on Thursday reported a consolidated net profit of ₹387.88 crore in the July-September quarter, helped by increased sales, softening kiln fuel price, improved demand for premium products and operational efficiency. The company had reported a loss of ₹87.32 crore in the corresponding period a year ago, said ACC, now a part of Adani Cement, in a BSE filing.
Total revenue from operations also increased 11.22 per cent to ₹4,434.73 crore during the quarter under review as against ₹3,987.34 crore in the corresponding period a year ago.
Sales volume (cement & clinker) increased by 17.4 per cent year-on-year to 8.1 million tonnes in the September quarter, according to an earnings statement.
ACC's whole-time Director & CEO Ajay Kapur said: "This growth is attributed to the improved demand for our premium cement products up by 1.5 pp YoY, net dealer addition of 534 during the quarter across all markets, coupled with our commitment to enhancing operational efficiency and prioritizing environmental sustainability."
Total expenses of ACC stood at ₹4,127.11 crore in the September quarter, down 0.84 per cent year-on-year.
Its total income was up 14.48 per cent to ₹4,644.78 crore in the September quarter.
"The operational excellence journey continues to deliver improved productivity and performance which have helped reduce operating costs and improve the bottom line," said the Adani group firm.
During the quarter, kiln fuel cost was reduced by 42 per cent, which was driven by fuel mix optimisation and higher alternate fuel consumptions, it added.
"Our commitment to enhancing logistics efficiencies has resulted in a road-direct-despatch increase from 52 per cent to 58 per cent and an increase in rail coefficient by 5 pp to 34 per cent," it said.
Over the outlook, Kapur said the cement industry will witness volumetric growth as the demand environment remains robust on the back of increased housing and infrastructure spending.
Shares of ACC Ltd on Thursday settled at ₹1,907.80 apiece on the BSE, up 0.92 per cent from the previous close.
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Total revenue from operations also increased 11.22 per cent to ₹4,434.73 crore during the quarter under review as against ₹3,987.34 crore in the corresponding period a year ago.
Sales volume (cement & clinker) increased by 17.4 per cent year-on-year to 8.1 million tonnes in the September quarter, according to an earnings statement.
ACC's whole-time Director & CEO Ajay Kapur said: "This growth is attributed to the improved demand for our premium cement products up by 1.5 pp YoY, net dealer addition of 534 during the quarter across all markets, coupled with our commitment to enhancing operational efficiency and prioritizing environmental sustainability."
Total expenses of ACC stood at ₹4,127.11 crore in the September quarter, down 0.84 per cent year-on-year.
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"The operational excellence journey continues to deliver improved productivity and performance which have helped reduce operating costs and improve the bottom line," said the Adani group firm.
During the quarter, kiln fuel cost was reduced by 42 per cent, which was driven by fuel mix optimisation and higher alternate fuel consumptions, it added.
"Our commitment to enhancing logistics efficiencies has resulted in a road-direct-despatch increase from 52 per cent to 58 per cent and an increase in rail coefficient by 5 pp to 34 per cent," it said.
Over the outlook, Kapur said the cement industry will witness volumetric growth as the demand environment remains robust on the back of increased housing and infrastructure spending.
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"Healthy growth and demand prospects auger well with the company's growth ambition with leading margins," it added. Shares of ACC Ltd on Thursday settled at ₹1,907.80 apiece on the BSE, up 0.92 per cent from the previous close.