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Updated 20:10 IST, July 29th 2024

ACC posts 22.5% drop in Q1 net profit

For the quarter under review, ACC's revenue from operations slightly decreased to Rs 5,154.89 crore, down from Rs 5,201.11 crore in the year ago quarter.

Reported by: Business Desk
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ACC Q1 2024 net profit decline
ACC Q1 2024 net profit decline | Image: Unsplash

ACC Q1 2024 net profit: Cement manufacturer ACC Ltd has announced a 22.46 per cent decline in its net profit for the first quarter ended June 2024, reporting a profit of Rs 361.40 crore compared to Rs 466.14 crore during the same period last year. This decline is detailed in a regulatory filing by ACC, which is now part of Adani Cement.

For the quarter under review, ACC's revenue from operations slightly decreased to Rs 5,154.89 crore, down from Rs 5,201.11 crore in the corresponding quarter of the previous year.

Despite the overall drop in net profit, ACC achieved a significant milestone with its highest-ever sales volume of Cement & Clinker in the April-June quarter over the past five years. The sales volume increased by 9 per cent to 10.2 million tonnes, driven by a rise in premium products and improved efficiency, the company stated in its earnings report.

ACC’s total expenses rose by 1.84 per cent to Rs 4,741.27 crore during the quarter. The company noted an improvement in kiln fuel costs due to a change in the fuel basket and a higher usage of alternative fuels. Although thermal value decreased, further improvements are anticipated in upcoming quarters.

Revenue from ACC’s cement business slightly decreased to Rs 4,852.26 crore, compared to Rs 4,877.63 crore in the same quarter last year. Revenue from ready-mix concrete also fell by 9.33 per cent to Rs 328.83 crore, down from Rs 362.69 crore a year ago.

Total income, including other sources of income, marginally declined to Rs 5,226.61 crore for the quarter.

Ajay Kapur, CEO of Cement Business at Adani Group, commented, "Our performance this quarter exemplifies our efficiency and agility. Our strategic decisions, customer-centric approach, and operational excellence continue to drive growth."

Looking ahead, ACC expects the Indian economy to grow between 6.5 per cent and 7 per cent for FY25, with the cement industry projected to grow between 7 per cent and 9 per cent. The Indian government has allocated Rs 11.11 lakh crore for infrastructure projects in Budget FY25, representing 3.4 per cent of GDP. The launch of Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY) to enhance rural connectivity is anticipated to boost cement demand.

ACC’s shares closed 0.38 per cent lower at Rs 2,603.75 on the Bombay Stock Exchange (BSE).

(With PTI inputs.)

Published 20:10 IST, July 29th 2024