Cement manufacturer ACC on January 25 reported a 375.10 percent rise in consolidated net profit for the December quarter at Rs 537.63 crore.
Its revenue came in at Rs 4,914.36 crore, up 8.31 percent over Rs 4,536.97 crore in the same quarter of the previous fiscal, the Adani Group firm said in an exchange filing.
Earlier this month, ACC said it has acquired the remaining 55 percent stake in Asian Concretes and Cements Private Limited (ACCPL) at an enterprise value of Rs 775 crore, making it a wholly owned subsidiary. This will enable
further improvement in volume growth in the coming quarters, the company said.
ACCPL has 1.3 MTPA cement capacity in Nalagarh (Himachal Pradesh), while subsidiary Asian Fine Cements Pvt Limited (AFCPL) has 1.5 MTPA cement capacity in Punjab’s Rajpura.
"ACC’s financial performance has seen a complete turnaround in the last 12 months. Recent capacity additions have taken the Adani Group’s cement capacity to 77.4 MPTA. This will enable volume and revenue growth on a sustainable basis,” said Ajay Kapur, Whole Time Director & CEO, ACC Limited.
ACC said its EBIT was at Rs 756 crore for the quarter against Rs 247 crore in the same quarter last year. EBIT margin also improved from 5.5 percent to 15.4 percent.
In its outlook for the market, ACC said the cement demand in India will continue to grow at 7-8 percent, primarily fuelled by investments in infrastructure and large-scale residential housing projects.
“This growth aligns strategically with the broader economic development goals of the country, as we move from a $3.5 trillion to $7.3 trillion economy by 2030. Opportunity buy of low cost petcoke will help to further optimise fuel costs in the coming quarters and will augur well in our cost optimisation journey,” said the cement producer.
Shares of the company closed up 10.81 percent at Rs 2477.80.
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