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
Resources

RentenPe and Mygate Partner to Transform Rent Payments in India

Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India’s first Rent Credit Score™ platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe’s payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..

Next Story
Real Estate

Supreme Unveils New Brand Identity to Elevate Lifestyle

Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group’s refreshed vision to ‘Elevate Lifestyle’. This brand transformation represents more than a visual refresh—it marks a strategic shift in the company’s mission, visual identity and market positioning. The update will be visible across all of Supreme’s digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..

Next Story
Infrastructure Urban

Capri Loans Launches #TarrakiKeHaath Campaign Honouring India’s Everyday Heroes

Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India — from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans’ long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat’s economy. Conceptualized by Rediffusion Brand Solutions, the..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?