ACC Limited shares surged over 5% to Rs 2,174.85 in initial deals on Wednesday after the cement maker reported a 29.5% decline in consolidated net profit to Rs 396.33 crore for the first quarter ended March 2022, compared to a profit of Rs 562.59 crore in the year-ago period. 

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It reported a 41% increase in consolidated net profit on a sequential basis from Rs 281 crore in the previous quarter.

The company, which follows the January-December financial year, posted total revenue from operations during the January-March quarter at Rs 4,426.54 crore, up 3.13% from Rs 4,291.97 crore in the year-ago period. Sequentially, it grew 5% from Rs 4,226 crore in the December 2021 quarter.

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During the quarter, ACC’s revenue from cement was Rs 4,102.24 crore and Rs 395.60 crore from ready mix concrete.

Cement sales volume for the quarter slipped 3.26% to 7.71 million tonnes (MT) from 7.97 MT in the corresponding quarter of 2021.

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Its total expenses surged 10.32% to Rs 3,956.37 crore in Q1 of 2022 from Rs 3,586.19 crore a year ago.

At the operating level, EBITDA declined 26.2% to Rs 634.6 crore in the reported quarter over Rs 860 crore in the year-ago period. EBITDA margin stood at 14.34% in Q1 FY23 as compared to 21.5% a year ago. EBITDA is earnings before interest, tax, depreciation and amortization.

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ACC Ltd is a subsidiary of Swiss building material major Holcim group (Earlier LafargeHolcim). 

The BSE benchmark Sensex was trading 324.07 points higher at 56,787.22 in early trade on Wednesday, halting its five-day decline. The Nifty was trading at 17,053.55, up 94.9 points.