Consolidated net profit for the September quarter increased to Rs 1,119.26 crore, the Adani group-owned company said on Friday, adding that the tax write-back of Rs 671.41 crore was on account of a reversal of certain tax provisions that the company had earlier made, and cash refund for taxes.
Its quarterly consolidated revenue of Rs 5,932 crore was the highest for any September quarter and was up by 28% from a year ago.
ACC’s sales growth was underpinned by a 16% increase in sales volume at 10 million tonnes. It was the highest-ever September quarter sales for the company, it said.
“Despite the challenges from prolonged monsoons, the sector stands to benefit from several favourable developments, including GST 2.0 reforms, the carbon credit trading scheme (CCTS), and the withdrawal of coal cess,” chief executive officer, Vinod Bahety, said in a company statement.
“These developments will support steady demand momentum going forward,” he said.ACC had an operating earnings before interest, tax, depreciation and amortisation of Rs 846 crore in the September quarter, up 94% year-on-year, while its EBITDA margin improved by 480 basis points y-o-y to 14.3%.The company made an EBITDA of Rs 849 on each tonne of cement sold, up 67% y-o-y.
“As part of the larger Adani Cement family and under the parentage of Ambuja Cements, ACC is benefitting from the Group’s integrated ecosystem—spanning logistics, renewable energy, and innovation,” Bahety said.
ACC saw a y-o-y drop in its power and logistics cost in the September quarter, while the consumption of green power as a percentage of its total power consumption and direct dispatches increased.
“Along with the parent company, ACC continues to work on cost leadership and targets to achieve Rs 3,650/ MT by FY28,” the company said in the statement.
ACC has an annual production capacity of 40.4 million tonnes, which will increase to 43.7 million tonnes in the current quarter. Debottlenecking of plants is likely to add another 5.6 million tonnes of capacity over the next 24 months, the company said.
“With GST reduction from 28% to 18%, improved economic sentiments, higher investments both from public and private sectors, the demand is expected to see an uptick, and we stand to our earlier annual growth estimate of 7-8%,” the company said in its outlook.
ACC reported its earnings during market hours. The company’s shares ended 1.2% higher on the BSE closed at Rs 1,881.30.