ACC, a cement company of the Adani group, reported that net profit in the March quarter was down 40 per cent at Rs 236 crore against Rs 396 crore in the same period last year, largely on higher cost and lower realisation
The company has announced a dividend of Rs 9.25 a share.
Income was up nine per cent at Rs 4,910 crore (Rs 4,485 crore).
Expenses increased 14 per cent to Rs 4,514 crore (Rs 3,956 crore).
Sales volume increased to 8.5 million tonne (mt) against 7.9 mt. Ebitda in the quarter in review was down at Rs 588 crore (Rs 693 crore).
While fuel costs are on a declining curve, EBITDA was lower due to higher fuel cost compared to last year. The fuel cost is expected to further reduce in the coming months through synergies with the Group, it said.
Also read: ACC logs net loss of ₹87 cr on higher input cost
The Ametha Integrated unit is to be commissioned by Q2 in this fiscal, which will increase clinker capacity by 3.30 million tonnes per annum (EC approvals in hand for 2.75 mtpa) and grinding capacity by 1 mtpa, it added.
Ajay Kapur, WholeTime Director and CEO, ACC said the financial performance was fuelled by sizeable operational efficiencies, improved synergies and business excellence.
“We have a detailed blueprint on each of the cost factors and initiatives to reduce it. This, along with the capex programme, will position the company back into growth,” he said.
The company continues to reduce its carbon footprint by lowering the clinker factor, reducing thermal and electrical energy intensity, implementing Waste Heat Recovery Systems at its plants and increasing use of renewable energy.
Long-term competitiveness remains intact, he said.
The company is encouraged by the Government’s increased spending on infrastructure development, particularly roads, railways, affordable housing and other schemes announced in the Union Budget, said the company.
“We are optimistic and maintain a positive outlook that the government’s timely and pro-active measures will open up more opportunities for the cement sector, which will stimulate cement demand and enhance economic growth,” said ACC.