ACC Q2 results: Numbers below Street expectations even as revenue and margin improve

The volume that ACC recorded in the September quarter is awaited. Though the earnings numbers’ were a miss on all fronts including profit, revenue, margin as well as EBITDA or earnings before interest, taxes, depreciation, and amortisation, the firm has seen improvement across all parameters.

ACC’s margin for the second quarter of the fiscal has improved by 1200 basis points to 12.4% as compared to 0.4% in the same quarter last year. This comes against the backdrop of a decline in costs.

The company’s employee costs during the quarter under review slipped 8% year-on-year to ₹195 crore. While power and fuel costs declined 33% YoY to ₹887 crore, freight and other expenses were down 4% and 8% each at ₹948 crore and ₹561 crore.

As per the company's exchange filing, during the quarter, it commenced commercial production of clinker with a capacity of 3.3 million tonne per annum at its integrated plant in Madhya Pradesh. Clinker and cement sales volume rose by 17.3 % YoY at 8.1 million tonne, the firm said.

“Kiln fuel cost (during the quarter) reduced by 42%, driven by fuel mix optimisation and higher Alternate fuel consumptions,” the firm said.

ACC also noted that its Waste Heat Recovery System at Kymore and Jamul (22.4 MW) became fully operational during the quarter. In addition, 16.3 MW at Ametha is expected to commission by the third quarter of 2023-24, it said, adding that the share of WHRS in total power consumption will increase to 9% by the end of FY24 as against 2.9% last quarter.