ACC's Q1 Profit Drops 20% Despite 9% Volume Increase
ECONOMY & POLICY

ACC's Q1 Profit Drops 20% Despite 9% Volume Increase

ACC Ltd, one of India's leading cement manufacturers, reported a 20% decline in its net profit for the first quarter of the fiscal year, despite a notable 9% increase in sales volumes. The company's net profit stood at Rs.380 crore, down from Rs.475 crore in the corresponding quarter of the previous year.

The decline in profit is primarily attributed to rising input costs, particularly coal and petroleum coke, which significantly impacted the company's operational expenses. Additionally, higher freight costs and an increase in the cost of other raw materials further strained profitability.

Despite the profit drop, ACC Ltd achieved a 9% year-on-year growth in cement volumes, driven by robust demand in the housing and infrastructure sectors. The company's revenue for the quarter rose to Rs.4,510 crore, up from Rs.4,130 crore in the same period last year.

Mr. Sridhar Balakrishnan, Managing Director and CEO of ACC Ltd, commented on the results, stating, "While we faced challenges due to increased input costs, our focus on operational efficiencies and cost optimization helped mitigate some of the impact. We remain committed to delivering sustainable growth and value to our stakeholders."

ACC Ltd has been actively investing in capacity expansion and modernization projects to enhance its production capabilities and improve efficiency. The company recently commissioned a new clinker production line at its facility in Jamul, Chhattisgarh, which is expected to further boost its production capacity in the coming quarters.

Looking ahead, ACC Ltd is optimistic about the demand outlook for cement, supported by government initiatives in infrastructure development and housing. The company aims to leverage these opportunities to drive growth and improve profitability.

Despite the current challenges, ACC Ltd's strategic initiatives and focus on cost management position it well for future growth in the competitive cement industry.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

ACC Ltd, one of India's leading cement manufacturers, reported a 20% decline in its net profit for the first quarter of the fiscal year, despite a notable 9% increase in sales volumes. The company's net profit stood at Rs.380 crore, down from Rs.475 crore in the corresponding quarter of the previous year. The decline in profit is primarily attributed to rising input costs, particularly coal and petroleum coke, which significantly impacted the company's operational expenses. Additionally, higher freight costs and an increase in the cost of other raw materials further strained profitability. Despite the profit drop, ACC Ltd achieved a 9% year-on-year growth in cement volumes, driven by robust demand in the housing and infrastructure sectors. The company's revenue for the quarter rose to Rs.4,510 crore, up from Rs.4,130 crore in the same period last year. Mr. Sridhar Balakrishnan, Managing Director and CEO of ACC Ltd, commented on the results, stating, While we faced challenges due to increased input costs, our focus on operational efficiencies and cost optimization helped mitigate some of the impact. We remain committed to delivering sustainable growth and value to our stakeholders. ACC Ltd has been actively investing in capacity expansion and modernization projects to enhance its production capabilities and improve efficiency. The company recently commissioned a new clinker production line at its facility in Jamul, Chhattisgarh, which is expected to further boost its production capacity in the coming quarters. Looking ahead, ACC Ltd is optimistic about the demand outlook for cement, supported by government initiatives in infrastructure development and housing. The company aims to leverage these opportunities to drive growth and improve profitability. Despite the current challenges, ACC Ltd's strategic initiatives and focus on cost management position it well for future growth in the competitive cement industry.

Next Story
Infrastructure Urban

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Next Story
Infrastructure Transport

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Next Story
Infrastructure Transport

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement