Adani Group-promoted ACC net profit falls 40% in Q4

Adani Group-promoted ACC on Thursday reported an over 40% year-on-year decline in its consolidated net profit for the March quarter at ₹235.66 crore, even as total income for the period rose more than 9% to ₹4,910.06 crore and the volume of cement sold was higher.

The Adani Group company’s earnings before interest, tax, depreciation and amortization was ₹588 crore during the quarter, down 15% on year, while EBITDA margins for the quarter stood at 12.3%, down 340 points on year. This was primarily on account of weaker realisations.

On a sequential basis, both the operating profit and margins improved helped by cost efficiencies.
ACC cut down its cost by 5% per tonne, or ₹264 to ₹5,106 per tonne, which helped it improve the operating profit made on each tonne of cement sold to ₹694 from ₹542 a quarter ago.

“Our transformation journey fuelled by sizeable operational efficiencies, improved synergies and business excellence has led to substantial improvement in our financial performance and overall business indicators,” Ajay Kapur, the whole-time director and chief executive officer of the company, said.

“We have a detailed blueprint on each of the cost factors and initiatives to reduce and improve. This along with capex program will position the company back into growth momentum synonymous with its legacy,” he said.