BackACC Q4 results: PAT drops nearly 30% YoY on higher fuel costs
In terms of sales volume, the company's cement sales stood at 7.71 million tonnes versus 7.97 million tonnes in Q4FY21. While Ready Mix Concrete sales dipped to 0.87 million cubic metres in Q4FY22 against 0.83 million cubic metres in Q4FY21.
PremiumOne of the largest cement producer, ACC Limited, earned a net profit of ₹396 crore on a consolidated basis for the quarter ending March 2022 (Q4FY22) - declining by 29.7% year-on-year. The profitability took a hit due to lackluster sales and a decline in operating profit due to the global rise in fuel costs.
The company had posted a consolidated net profit of ₹563 crore in the January - March period of FY21.
Consolidated net sales, however, rose marginally by 2.6% to ₹4,322 crore in the quarter under review, compared to ₹4,213 crore in Q4 of last fiscal.
In terms of sales volume, the company's cement sales stood at 7.71 million tonnes versus 7.97 million tonnes in Q4FY21. While Ready Mix Concrete sales dipped to 0.87 million cubic metres in Q4FY22 against 0.83 million cubic metres in Q4FY21.
EBITDA dropped by more than 26% to ₹635 crore in Q4FY22 versus ₹860 crore in Q4FY21, due to a significant fuel cost increase despite project ‘Parvat’ delivering strong internal efficiencies. EBITDA margins stood at 14.7% in Q4FY22 versus 20.4% in Q4FY21.
On the performance, Sridhar Balakrishnan, Managing Director and CEO said, "The January to March 2022 quarter was impacted due to the global rise in fuel costs driven by the overall geopolitical situation. Our efficiency and cost reduction actions under project ‘Parvat’ remained very strong and helped us partially offset the impact. The new investments in waste heat recovery systems will help us mitigate the energy cost inflation while also strengthening our sustainability actions."
Further, Balakrishnan added, "ACC has been a pioneering brand with a history of ‘Category first’ innovations that have gone on to set new benchmarks. Our Green Concrete “ECOPact" is now 17% of the total Readymix sales. We have further expanded our ECO-friendly product portfolio by launching a new climate control concrete insulation system ‘AIRIUM’ during the quarter."
"ACC’s focusing on capacity growth, delivering cost reduction, and sharp actions on sustainability has continued. Our execution capabilities to drive efficiencies and commission new projects have enabled us to make ACC significantly stronger," Balakrishnan added.
Balakrishnan stated that "Our ongoing initiatives on growth, sustainability, and productivity improvements will continue as we progress on the consequent execution of our strategy."-
ACC-led Ametha project is progressing ahead of schedule to add 5 MTPA capacity and the commissioning of the integrated unit is expected in Q4 2022. Notably, the company commissioned Tikaria grinding unit with 1.6 MTPA capacity in February this year.
Also, the company's waste heat recovery projects at Jamul and Kymore plants are on track. While the board has approved the next phase of projects at the Chanda and Wadi plants. ACC expects the total capacity to reach 75 MW.
On BSE, ACC shares ended at ₹2057.90 apiece down by ₹95.65 or 4.44%.
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