ACC, one of the leading cement companies, has reported a net loss of ₹87 crore in the September quarter against net profit of ₹450 crore logged in the same period last year, following a sharp rise in operational cost.
In its first ever quarterly results after being taken over by Adani Group, the company reported that its revenue from operations increased 6 per cent to ₹3,987 crore (₹3,749 crore).
Cement production in the quarter was up 4 per cent at 6.85 million tonne (6.57 mt).
Overall expenses jumped 30 per cent to ₹4,162 crore (₹3,204 crore) as power and fuel bill increased 67 per cent to ₹1,318 crore (₹788 crore) while freight cost was up 14 per cent at ₹983 crore (₹860 crore).
Ebitda dipped to ₹16 crore (₹712 crore) while Ebitda margin plunged to 0.4 per cent (19.5 per cent). The company has accumulated inventory of ₹223 crore (₹119 crore) due to weak demand.
Financial year extended to March 31
The company paid a special incentive of ₹16 crore to select key employees pursuant to change in ownership. In September quarter, the Board has approved the change of financial year end from December 31 to March 31. Accordingly, the current financial year has been extended by three months to end on next March, it said.
The Group has terminated its agreement with Holcim Technology for payment of technology and know-how fees at one per cent of net sales.
B Sridhar, Whole Time Director & CEO, ACC said there was a significant cost pressures in the recent past due to steep fuel price rise. The company recorded strong growth in ready-mix volume of 10 per cent and it will remain as a huge growth engine for future, he added.
Arafat Saiyed, Senior Result Analyst, Reliance Securities said while realisation during the quarter were better, input cost pressure took a toll on Ebitda margin which contracted sharply. Higher input cost continues to remain the major concern for all cement companies in this fiscal.
The commissioning of new capacities and further improvement in operating parameters by way of setting up WHRS (waste heat recovery system) at various plants should aid it to witness a sustainable growth, he said.
Shares of the company increased one per cent to ₹2,270 on Monday.