Adani-group owned ACC’s consolidated profit slumps 92% on year in September quarter

MUMBAI: Adani group-owned ACC’s profit nosedived 92% year-on-year in the September quarter as sales volumes were lower, costs were higher and as the year-ago period had the benefit of a large tax write-back. It reported a profit of Rs 93 crore for Jul-Sep; this compares to Rs 1,119 crore in the year ago period, which had a tax writeback of Rs 671 crore.

The cement producer reported its earnings during market hours on Tuesday, reacting to which its shares hit their 52-week low of Rs 1,115 on the BSE. The shares closed at Rs 1,147.50 on the BSE, down 1.6% from the previous close.

The company sold 9.7 million tonne of cement during the September quarter, down from 10 million tonne a year ago. This includes the impact of the Master Supply Agreement (MSA) with Ambuja Cements, where it supplied higher volumes to the parent entity. Consolidated revenue from operations also fell a little over 5% to Rs 5,689 crore from Rs 6,005 crore earlier.


“While the reported numbers are not strictly comparable due to the impact of MSA, the underlying business momentum remains encouraging, supported by our trade partners,” chief executive officer Vinod Bahety said.

Total expenses for the period rose over 2% on year to Rs 5,602 crore despite the fall in revenue.

Earnings before interest, tax, depreciation and amortization, meanwhile, more than halved to Rs 401 crore from Rs 846 crore a year ago. Operating margins, too, halved to 7.0% from 14.1% a year ago, while the EBITDA made on each tonne of cement fell to Rs 414 from Rs 849 a year ago.

“Industry demand remains supportive and is expected to strengthen post-monsoon, aided by housing, infrastructure and capital expenditure, while improving pricing momentum should moderate the impact of elevated fuel and energy costs,” Bahety said.

The company said that it expects demand in the medium-term to be supported by infrastructure investment, urbanisation, rural housing and industrial activity. Capital expenditure by the central government increased 18% on year to Rs 5.1 lakh crore during Apr–Aug this year, compared with Rs 4.3 lakh crore in the corresponding period last year, the company said.