Cement maker ACC Ltd on Tuesday reported a 29.5 per cent decline in consolidated net profit to Rs 396.33 crore for the first quarter ended March 2022, mainly due to the rise in fuel cost.
The company, which follows the January-December financial year, had posted a profit of Rs 562.59 crore a year ago
Cement maker ACC Ltd on Tuesday reported a 29.5 per cent decline in consolidated net profit to Rs 396.33 crore for the first quarter ended March 2022, mainly due to the rise in fuel cost.
The company, which follows the January-December financial year, had posted a profit of Rs 562.59 crore a year ago, ACC -- a subsidiary of Swiss building material major Holcim group (Earlier LafargeHolcim) -- said in a BSE filing.
However, its total revenue from operations during the January-March quarter increased 3.13 per cent to Rs 4,426.54 crore against Rs 4,291.97 crore in the year-ago period.
"The January to March 2022 quarter was impacted due to the global rise in fuel costs driven by the overall geopolitical situation," ACC earning statement quoted its Managing Director and CEO Sridhar Balakrishnan as saying.
Its efficiency and cost reduction actions remained strong and helped the company to "partially offset" the impact, the statement said.
During the quarter, ACC's revenue from cement was Rs 4,102.24 crore and Rs 395.60 crore from ready mix concrete.
In the January-March quarter, ACC’s cement sales volume slipped 3.26 per cent to 7.71 million tonne (MT) compared to 7.97 MT in the corresponding quarter of 2021.
Its total expenses rose 10.32 per cent to Rs 3,956.37 crore in Q1 of 2022 from Rs 3,586.19 crore a year ago.
"Strict cost control measures enabled a reduction in fixed cost vs previous year," it added.
Over the outlook, Balakrishnan said the demand situation is expected to further improve in the coming months.
"We are confident that the demand situation will further improve in the coming months, supported by an improving domestic economic environment and various initiatives from the Government in terms of increased spending on infrastructure development," he said.
While sharing updates on COVID-19, ACC said strict adherence to government guidelines and Covid appropriate behaviour is ensured across our locations.
Shares of ACC Ltd on Tuesday settled at Rs 2,057.90 on the BSE, down 4.44 per cent from the previous close.