ACC has reported a 60 per cent dip in its Q2 net profit to ₹227 crore against ₹569 crore reported in the year-ago period, largely due to lower realisation amid rising input cost.
Net sales in the June quarter were up 15 per cent at ₹4,393 crore (₹3,810 crore). While the sales volume increased 11 per cent to 7.56 million tonne (6.84 mt), EBITDA plunged to ₹426 crore (₹869 crore). Expenses increased to ₹4,222 crore (₹3,169 crore).
Fuel costs, inflation
The quarter was impacted by rising global fuel costs and related inflationary impacts. The company was able to mitigate part of this impact through efficiency enhancement project. The cost reduction journey will be further accelerated with commissioning of waste heat recovery projects in Jamul, Kymore and Ametha plants taking the share of green power to 15 per cent, said the company.
ACC expects to commission the integrated 5 mt per annum cement plant at Ametha in Madhya Pradesh by the December quarter. Land acquisition and other actions for the grinding unit project at Salai Banwa are progressing as per schedule, it said.
Working in favour
The company has cash and cash equivalent of ₹4,517 crore as of June-end. Sridhar Balakrishnan, Managing Director and CEO, ACC, said all the projects that are underway will continue to deliver strongly on all strategic priorities.
The company expects government’s concerted efforts to stimulate investment across several sectors will have a favourable impact on improving the overall economic environment in the country. Prediction of a normal monsoon will augur well for the rural economy and boost demand in the coming months, it said.
Adani Group is in the process of acquiring Holcim group stake in 63.1 per cent stake in Ambuja Cement, which in turn, owns 50.1 per cent stake in ACC. Once the ₹81,500-crore deal is completed after getting all the requisite regulatory approval, ACC will become an Adani Group company. Shares of the company were down 1 per cent at ₹2,156 on Thursday ahead of the results announcement.