ACC Ltd Reports 22.46% Decline in Q1 Net Profit Despite Record Sales Volume

Cement maker ACC Ltd reported a 22.46% decline in net profit to Rs 361.40 crore for Q1 June 2024. Revenue fell slightly to Rs 5,154.89 crore, while sales volume of Cement & Clinker saw a 9% increase. Total expenses rose 1.84%, with the Kiln fuel cost improving.

On Monday, cement manufacturer ACC Ltd announced a 22.46% drop in net profit, reaching Rs 361.40 crore for the first quarter ending in June 2024. This is down from Rs 466.14 crore in the same quarter last year, according to ACC's regulatory filing, now part of Adani Cement.

Revenue from operations saw a slight decline to Rs 5,154.89 crore, compared to Rs 5,201.11 crore a year earlier. However, the company reported a 9% increase in Cement & Clinker sales volumes, reaching 10.2 million tonnes, making it the highest Q1 volume in five years. ACC attributes this to premium product growth and efficiency improvements.

Total expenses rose by 1.84% to Rs 4,741.27 crore, with improvements in Kiln fuel costs due to changes in the fuel basket and higher uses of alternative fuels. CEO Ajay Kapur commented on ACC's efficiency and agility driving growth, projecting a positive outlook for the cement industry amid stable government policies and infrastructure investments.