ACC's Q1 Profit Drops 20% Despite 9% Volume Increase
02 Aug 2024
2 Min Read
CW Team
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.
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