ACC’s profit doubles on year aided by volume growth, govt grant
ACC’s profit doubled on year in the December quarter, aided by robust volume growth, a moderation in fuel costs and a refund related to government grants.
The cement maker posted a consolidated net profit of Rs 1,092 crore for the fiscal third quarter, while revenue from operations rose nearly 21% on year to Rs 5,927 crore. The company sold 10.7 million tonnes of cement during the quarter — its highest ever and up 21% from a year earlier. Sales volume of premium products also increased.
Of its revenue, around Rs 720 crore came from government grants, including a refund of around Rs 637 crore. “A part of this grant is recurring, while some of it is a one-off,” an analyst with a domestic brokerage said.
ACC reduced its kiln fuel cost by 10% and logistics cost by 9% on year, and this helped its operating earnings before interest, tax, depreciation and amortisation rise more than 23% on year to Rs 1,116 crore.
“Our Q3 results demonstrate our strategic focus on driving growth through higher volumes, cost optimisation and enhanced efficiencies,” chief executive Ajay Kapur was quoted in a news release.
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