ACC, an Adani Group company, reported that its net profit in the March quarter was down 68 per cent at ₹238 crore against ₹751 crore logged in the same period last year, largely due to higher cost and lower realisation.
Revenue was up 18 per cent at ₹7,124 crore (₹6,040 crore).
Overall expenses increased 23 per cent to ₹6,826 crore (₹5,562 crore).
The company has declared a dividend of ₹7.50 per equity share and fixed June 12 as the record date.
ACC recorded 8 per cent growth year-on-year and highest ever sales of 11.9 million tonne in the quarter under review. Capacity utilisation improved 9 per cent sequentially to 80 per cent.
ACC expects to add 3.4 mtpa of capacity in June quarter with completion of expansion at Salai Banwa (UP) and Kalamboli (Maharashtra). Green power share increased from 22 per cent to 31 per cent in Q4 year-on-year.
Cost pressures from fuel, diesel and packaging bag supply constraints besides rupee depreciation impacted earning in this quarter and this impact is expected to continue in H1 of FY’27, said the company.
The company plans to strengthen cost-mitigation measures through fuel mix optimisation, higher renewable energy usage, reducing logistics costs via rail and sea and disciplined production and inventory management, it said.
Ambuja merger
ACC expects the merger with Ambuja Cement to be completed in this fiscal after receiving necessary approvals.
Vinod Bahety, Whole-Time Director & CEO, ACC said the company has managed to sustain performance despite the global volatility and energy cost pressures by focusing on market penetration and disciplined operations.
Volume growth was driven by a higher share of trade and premium cement, continued momentum in ready-mix concrete, and improved utilisation of existing asset base.
In FY’27, the company expects cement demand to remain soft at 5 per cent, factoring in early forecasts of a below normal monsoon, which could adversely impact agricultural output and housing demand.
With the ongoing West Asia conflict leading to fuel price volatility, the company will continue to focus on new markets, scaling up trade sales and driving premiumisation across its portfolio, it said.