ACC, one of the largest cement producers, has reported that its June quarter net profit was down 23 per cent to ₹361 crore against ₹466 crore logged in the same period last year on the back of lower realisation.

Income was down marginally to ₹5,227 crore (₹5,278 crore) in the quarter under review, and EBITDA was down to ₹679 crore (₹R771 crore).

The realisation was down at ₹664 (₹818) a tonne.

The company’s sales volume grew by 9 per cent to 10.2 million tonnes (9.4 mt), the highest in the last five years.

The company has managed to cut costs by reducing the kiln fuel cost to ₹1.73 per 1000 kCal from ₹2.14 by changing the fuel basket and higher consumption of alternative fuels.

Further, the thermal value reduced from 757 kCal to 739 kCal and move improvement is expected in the coming quarters.

Ajay Kapur, CEO – Cement Business, Adani Group, said the company’s strategic decisions, customer-centric approach, and operational excellence continue to drive growth as it focuses on delivering value to stakeholders in a sustainable manner.

He added that the RMX business is growing steadily, with improved  profitability driven by improved efficiency parameters and optimising its footprint, he added.

The company has cash and cash equivalent of ₹2,747 crore.

The cement industry, which accounts for 23 per cent of the building materials industry, has a strong correlation with GDP growth.

With a stable government and progressive policies, the economy is expected to grow 6.5-7 per cent this fiscal and the cement industry may grow between 7-9 per cent, it said.

The Budget has allocated ₹11.11 lakh crore for infrastructure projects, which represents 3.4 per cent of GDP. Phase IV of Pradhan Mantri Gram Sadak Yojana will be launched to provide all-weather connectivity to 25,000 rural habitations. All these measures are expected to bring buoyancy to cement demand, said the company.

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