ACC shares surge over 5% despite reporting 29% fall in Q1 net profit
ACC Limited reported a 29.5% decline in consolidated net profit to Rs 396.33 crore
ACC follows the January-December financial year
The company's total expenses surged 10.32% to Rs 3,956.37 crore in Q1 of 2022
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.
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.
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.
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.
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.