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.

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
Real Estate

Bennet & Bernard Unveil Dutch-Inspired ‘Casa El Toledo’ in Goa

Bennet & Bernard Group, Goa’s leading luxury real estate developer, has launched its newest project, Casa El Toledo, in Assagao. The enclave features 18 ultra-luxury 4 BHK Dutch-style villas blending European charm with tropical elegance. Each villa includes a private pool, double-height ceilings, open courtyards, alfresco dining areas, and English-inspired landscaping. The interiors are curated by noted Dutch designer Kelly Marie.   Reflecting the grandeur of the Dutch Golden Age, Casa El Toledo harmonises heritage aesthetics with modern sensibilities. Expansive interiors flow..

Next Story
Equipment

Godrej Delivers Heaviest Ecolaire Surface Condenser to US Project

Godrej Enterprises Group’s Process Equipment business has manufactured and delivered its heaviest Ecolaire® Surface Condenser to date, weighing nearly 450 metric tonnes, for a power-generation project in the United States. The project, powered by natural gas and partly designed for hydrogen compatibility, marks another step in advancing clean energy systems. Produced at the company’s GreenCo-certified Dahej facility in Gujarat, the equipment demonstrates India’s growing engineering capabilities and reinforces Godrej’s ‘Make in India for the World’ vision.  Hussain S..

Next Story
Infrastructure Energy

India, Brazil Discuss Energy Ties And Oil Investments

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri held discussions with Celso Luis Nunes Amorim, Special Advisor to the President of Brazil, and senior Brazilian officials to strengthen bilateral cooperation in the oil, gas, and energy transition sectors. The talks took place during a dinner hosted by Kenneth H da Nobrega, Ambassador of Brazil to India, at his residence in New Delhi.Mr Puri said the meeting focused on Indian investments in Brazil’s oil and gas sector, as well as expanding collaboration in energy transition and biofuels. “The enriching conversation revolved ar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?