ACC Q2 results: Net profit decreases 16.8% QoQ at ₹388 crore

ACC Q2 results: The Indian cement maker reported a 16.8% QoQ decline in its net profit to ₹388 crore in September. The company reported a net consolidated profit of ₹466.14 crore in the April-June quarter of the current financial year.

The company reported a net consolidated loss of ₹87.35 crore in the same quarter last year. The increase in profit of the company in the current financial year was led by a reduction in the cost of power and fuel expenses. The revenue from operations of the company increased by 11.22 percent to ₹4,434.73 crore from ₹3,987.34 crore, the cement maker said in a regulatory filing.

Led by cost savings and operational efficiency, ACC's EBITDA increased by ₹673 crore and stood at ₹759 crore. Its EBITDA margin expanded by 14.2 pp from 2.1% to 16.3%.

The company increased its clinker capacity by starting the operation of its Ametha Integrated plant in Madhya Pradesh in the September quarter. The plant boosted ACC's clinker capacity with an additional 3.3 MPTA. The cement firm also laid focus on green power through WHRS and Renewable Power.

“In continuation of our strong performance from the first quarter, we are pleased to announce a spectacular second quarter of FY 2023-24, witnessing an 11.2% YoY surge in revenue, ₹673 Cr jump in EBITDA and improvement in PAT to Rs. 388 Cr," said Ajay Kapur, Whole Time Director and CEO, ACC Limited.

The growth of the company was led by improved demand for cement products which was up by 1.5 pp YoY at 32% of trade sales, Net dealer addition of 534 during the quarter across all markets, he added.

Cement industry to witness growth amid robust demand

Due to the robust demand environment, the cement industry is expected to witness volumetric growth. The healthy growth and demand prospects of the industry augers well with the company's growth ambition with leading margins, said the company in its press release. ACC is also striving to attain the target of a fivefold water-positive status by 2030. The company claimed to benefit more than 34,000 people with its CSR programs.