ACC Q2 results: Net profit after tax (PAT) drops 39% to ₹2.34 billion
ACC profit after tax dropped 39% to ₹2.34 billion (about $28 million) in the three months ended Sept. 30, but was above analysts' average estimate of ₹2.18 billion, per data compiled by LSEG
Indian cement maker ACC reported a smaller-than-expected decline in second-quarter profit on Thursday, as steady volume growth helped mitigate a decline in cement prices and rising costs.
The company's profit after tax dropped 39% to ₹2.34 billion (about $28 million) in the three months ended Sept. 30, but was above analysts' average estimate of ₹2.18 billion, per data compiled by LSEG.
Revenue from operations grew 4% to ₹46.08 billion, while its expenses rose about 8% to ₹44.44 billion owing to a 17% surge in input costs.
Key Context
Cement prices hit five-year low of ₹336 per bag in the September quarter, ACCording to Ambit Capital, due to an industry-wide ramp-up in production to meet medium-term demand expectations, leading to greater supply.
Earlier this week, ACC's larger rival UltraTech Cement reported a steeper-than-expected decline in profit due to low cement prices.
ACC reported a 15% sales growth, compared to a 9% growth in the preceding quarter.
The company also said it expects demand improvement across the cement industry in the second half of fiscal year 2025, likely due to post-monsoon pickup in construction and housing activity.
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Business NewsCompaniesCompany ResultsACC Q2 results: Net profit after tax (PAT) drops 39% to ₹2.34 billion
First Published:24 Oct 2024, 06:34 PM IST
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