ACC Q1 results: Profit up two folds at Rs 466 crore

Cement maker ACC Ltd on Thursday reported two-fold jump in consolidated net profit at Rs 466.14 crore for June quarter 2023-24, helped by volume increase, softening of kiln fuel price and improvement in operational efficiency.

The company had posted a profit of Rs 227.35 crore for April-June period a year ago, said ACC, now a part of Adani Cement, in a BSE filing. Total revenue from operations during the quarter under review was at Rs 5,201.11 crore as against Rs 4,460.42 crore in the corresponding period a year ago.

Sales volume (Cement & Clinker) increased by 23.2 per cent year-on-year at 9.4 million tonne supported by an increase in blended cement and improvement in efficiency parameters and reduction in kiln fuel cost by 15.5 per cent, said an earning statement from ACC.

Besides, energy efficiency, manpower productivity and other operational efficiency improvement measures have helped optimise cost, it added. Total expenses in the quarter were at Rs 4,655.39 crore, up 10.27 per cent from the year-ago period. Total income was at Rs 5,270 crore, up 16.53 per cent.

ACC's whole-time Director & CEO Ajay Kapur said:" The growth was driven by robust demand for high-quality cement products across all markets, as well as our continuous efforts to optimize operations and reduce environmental impact." Over the outlook, he said the cement industry is in a positive cycle of demand as well as cost factors.

"This is coming at the most appropriate time when the company is under transformation phase, buoyed by synergies with the group. We expect the positive trend of industry to continue in coming quarter," said Kapur. Shares of ACC Ltd on Thursday settled at Rs 1,938.65 apiece on the BSE, up 0.86 per cent from the previous close.

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