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Informist, Monday, Jul 29, 2024

--ACC Apr-Jun consol net profit 3.61 bln rupees

--Analysts saw ACC Apr-Jun consol net profit 4.20 bln rupees

--ACC Apr-Jun consol net profit 3.61 bln rupees vs 4.66 bln

--ACC Apr-Jun consol revenue 51.55 bln rupees vs 52.01 bln

By Sunil Raghu

AHMEDABAD - ACC Ltd's consolidated cement and clinker sales volume rose 9.2% on year, but weak cement pricing led to lower margins and in turn a fall in the revenue by 0.9% on year, in the quarter ended June. The rise in finance costs too saw this cement maker from Adani Group take a hit in the quarter.

ACC, like its peers, was expected to face the impact of the fall in demand due to the General Elections in the country and softer cement prices on its revenues, net profit and operational margins during the quarter. While it has bucked the trend by seeing a rise in its sales volumes, it has followed the expected trend in its revenues, net profit and operational margins.

ACC's sales volume of cement and clinker rose to 10.2 mln tn in Apr-Jun. Sequentially, it was down 1.92%, but was the highest-ever among June quarters in the last five years. The sales volume of ready-mix concrete, however, declined 15.79% on year, but rose 3.03% on quarter to 0.68 mln cu mtr.

The cement maker's consolidated revenue from operations fell 0.9% on year and 4.7% on quarter to 51.55 bln rupees in Apr-Jun. The revenue was, however, better than the Street estimate of 3.2% on year and 6.9% on quarter fall to 50.35 bln rupees. The company's other income fell to 717.2 mln rupees from 769.1 mln rupees a year ago.

The company's consolidated net profit in Apr-Jun fell 22.5% on year and 61.8% on quarter to 3.61 bln rupees. The analysts had estimated ACC's consolidated net profit to fall 9.8% on year and 55.5% on quarter to 4.2 bln rupees.

In Apr-Jun, total expenditure, including finance costs, was at 47.41 bln rupees, compared with 46.55 bln rupees a year ago. The finance costs rose to 331.4 mln rupees, from 251.1 mln rupees a year ago.

The company's tax outgo for the June quarter was at 1.25 bln rupees, against 1.59 bln rupees a year ago.

ACC's consolidated earnings before interest, tax, depreciation and amortisation fell 11.93% on year to 6.79 bln rupees in the June quarter, from 7.71 bln rupees a year ago.

In Apr-Jun, the cement company's employee benefit expenses fell 16.68% on year to 1.64 bln rupees, while it had a gain on account of changes in inventories of finished goods, work-in-progress and stock-in-trade of 406.2 mln rupees, compared with a gain of 508.3 mln rupees a year ago.

In the June quarter, ACC's power and fuel costs were down 11.07% on year to 10 bln rupees. The freight and forwarding expenses fell 6.87% to 10.85 bln rupees, while other expenses were up 6.76% to 4.75 bln rupees. Power and fuel costs and freight expenses are two major input costs for cement companies.

The company said that its operating EBITDA contracted 13.2% from 14.8% a year ago. The EBITDA per tn also fell to 664 rupees from 818 rupees a year ago.

Today, shares of ACC closed 0.4% lower at 2,604.30 rupees on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Manisha Baxla

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