ACC reported 60% fall in consolidated net profit to Rs 227 crore despite a 15% rise in net sales to Rs 4,393 crore in Q2 June 2022 as compared with Q2 June 2021.
Cement sales volume stood at 7.56 million tonnes (up 10.5% YoY) while the sales volume of Ready Mix Concrete was 0.83 million cubic meters (up 43.1% YoY) in the Apr-Jun 2022 quarter.
Power and fuel expenses in Q2 June 2022 amounted to Rs 1,311.92 crore, up 58% YoY.
Consequently, EBITDA dropped by 51% to Rs 426 crore in Q2 June 2022 from Rs 869 crore in Q2 June 2021. EBITDA margin was 9.7% in Q2 June 2022 as against 22.8% in Q2 June 2021.
Operating EBITDA margin was 6% in Q2 June 2022 as compared with 19% in Q2 June 2021.
Cash & Cash Equivalent stood at Rs 4,517 crore as at 30 June 2022.
ACC said that the Ametha project to add approximately 5 MTPA capacity progressing as per schedule. Waste heat recovery projects at Jamul and Kymore plants on track for commissioning in Q3 2022; orders placed for next wave of projects at Chanda and Wadi plants, it added.
Sridhar Balakrishnan, Managing Director and CEO, said: ACC continues its journey of capacity growth with the Ametha integrated project being on track. The integrated unit at Ametha will be commissioned in Q4 2022. Land acquisition and other actions for the grinding unit project at Salai Banwa are progressing as per schedule.
The April to June 2022 quarter was impacted by rising global fuel costs and related inflationary impacts. We were able to mitigate part of this impact through our efficiency project 'Parvat'. The cost reduction journey will be further accelerated with commissioning of waste heat recovery projects in Jamul, Kymore & Ametha plants taking the share of green power to 15%.
With respect to business outlook, the CEO stated: Government's concerted efforts to stimulate investment across several sectors will have a favorable impact on improving the overall economic environment in the country. Prediction of a normal monsoon will augur well for the rural economy. We maintain a positive outlook for demand in the coming months.
ACC is one of India's leading producers of cement and ready mix concrete.
The scrip shed 0.75% to end at Rs 2156.40 on the BSE today.
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