Cement maker ACC's profit tumbles 60% in April-June, revenue rises 15%

Cement maker ACC, which was recently acquired by the Adani group along with Ambuja Cement in a $10.5-billion deal, on Thursday reported a 60 per cent year-on-year decline in consolidated profit after tax (PAT) to Rs 227 crore for the quarter ended June 30, 2022. In the corresponding period last year, consolidated PAT stood at Rs 569 crore, its financial results show.

Bloomberg consensus estimates had pegged net profit at Rs 296 crore and revenue at Rs 4,390 crore for the period under review.

Consolidated revenue for the quarter grew 15 per cent year-on-year to Rs 4,468 crore, up from Rs 3,885 crore in the year-ago period. On a QoQ basis, the revenue grew marginally by 0.9 per cent from Rs 4,427 crore in the previous quarter. While profit declined by 42.6 percent from Rs 396 crore in the previous quarter. The company follows a January-December financial year.

The June quarter was impacted by a moderation in demand and prices as well as elevated costs of power and pet coke, sector analysts said.

Earnings before interest, tax, depreciation and amortization (Ebitda) for the June quarter came in at Rs 430.6 crore, against a Bloomberg consensus estimate of Rs 502 crore for the period.

The fall in Ebitda impacted margins of the company, sector analysts said. For the June quarter, Ebitda margins came in at 9.4 per cent versus 22.4 per cent reported in the same period last year, they said.

The ACC stock closed trade flat on the BSE on Thursday, at Rs 2,156.40 a share. In the last one month, the stock is up 2 per cent only.