Cement major ACC Ltd. published disappointing results for the quarter ended in June 2022 as its profits contracted 60% due to high energy costs.
Profit for the quarter stood at Rs 227 crores, significantly lower than estimated figures, as opposed to Rs 569 crores reported last year in the corresponding quarter. On a quarterly basis, the profits declined 42.7% from Rs 396 crores reported in the quarter ended in March 2022.
L&T infotech Q1 results are out, profits jump by 28%, read more.
However, the company had a 15% growth in revenues as revenue for the quarter came in at Rs 4,468 crores. Cement sales volume improved 10.5% YoY to 7.56 million tonnes while sales of Ready Mix Concrete came in at 0.83 million cubic meters, up 43.1% YoY.
The company's cost of raw materials surged 15.5% YoY while power and fuel expenses were Rs 1,311.92 crores, up 58% YoY. Total expenses of the company surged 33% YoY. Its EBITDA dropped 51% YoY to Rs 426 crores and the margin for the quarter was 9.7%. The operating EBITDA margin was 6%, showing a significant decline.
"The April to June 2022 quarter was impacted by rising global fuel costs and related inflationary impacts. We were able to mitigate part of this impact through our efficiency project 'Parvat'. The cost reduction journey will be accelerated with the commissioning of waste heat recovery projects in Jamul, Kymore & Ametha plants taking the share of green power to 15%" said Shridhar Balakrishna, MD & CEO of ACC.
The stock witnessed a full gap-down opening as it opened at Rs 2,132.05 per share as it hit a low of Rs 2,111 per share today. It currently trades at around Rs 2,135 per share.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com