The cement producer announced its earnings during market hours, and its shares closed at Rs 1,890.00 on the BSE, down 3.1% from the previous close.
ACC had a sales volume of 11.5 million tonne during the June quarter, the highest ever for the first quarter. This helped the consolidated revenue for the quarter rise 17% on year to Rs 6,087 crore. Higher sales of premium products as a proportion of trade also aided the revenue, the company said in a statement.
While operating earnings before interest, tax, depreciation and amortization (EBITDA) rose 15% as compared to the previous year to Rs 778 crore, operating margins were 30 basis points lower at 12.8%. The company made an operating EBITDA of Rs 678 on every tonne of cement it sold, up from 664 rupees a year ago. The operating EBITDA was, though, lower than market expectations.
Total tax expenses for the quarter surged 51% on year to Rs 187.53 crore. This included a deferred tax liability of Rs 32.97 crore for the quarter as compared to 1.72 crore a year ago.
For the current fiscal, the company expects a 6-7% growth in demand for cement due to rise in demand for affordable housing, higher spending on infrastructure and commercial sector, which includes increased investment in core and allied infrastructure sector.“Cement demand growth in Q1 FY’26, remained strong at 4% amid favourable macroeconomic situations and sustained demand from housing and infrastructure segments. Outlook for Q2 FY’26 continues to remain strong,” it said in a statement.
