The cement maker posted a consolidated net profit of Rs 1,092 crore for the fiscal third quarter, while revenue from operations rose nearly 21% on year to Rs 5,927 crore. The company sold 10.7 million tonnes of cement during the quarter — its highest ever and up 21% from a year earlier. Sales volume of premium products also increased.
Of its revenue, around Rs 720 crore came from government grants, including a refund of around Rs 637 crore. “A part of this grant is recurring, while some of it is a one-off,” an analyst with a domestic brokerage said.
ACC reduced its kiln fuel cost by 10% and logistics cost by 9% on year, and this helped its operating earnings before interest, tax, depreciation and amortisation rise more than 23% on year to Rs 1,116 crore.
“Our Q3 results demonstrate our strategic focus on driving growth through higher volumes, cost optimisation and enhanced efficiencies,” chief executive Ajay Kapur was quoted in a news release.
Operating margin improved by 4 percentage points on year to 18.8%. The operating profit that it made on each tonne of cement rose to Rs 1,038 from Rs 1,017 a year earlier.The company expects the demand for cement to rebound in the current quarter, helped by construction activity accelerating in the infrastructure and housing segments. “The pro-infra and housing budget 2025, along with increased government spending on infrastructure and construction activities, is anticipated to further support this growth,” ACC said, pegging growth for the current fiscal year at 4-5%.
