ACC Q2 Results Preview | Net profit may jump to ₹389 crore on strong margins

The company's Profit After Tax (PAT) is anticipated to experience a remarkable turnaround, with a positive growth of Rs 389 crore, in stark contrast to the previous year's loss of Rs 87 crore.

In the current quarter, factors at play include expectations of realizations remaining flat or experiencing a 4%-5% year-on-year decrease. However, margin growth is anticipated to be substantial, primarily due to a low base in the previous year. Notably, ACC has experienced good volume growth, with a 19% year-on-year increase, reaching 8.15 million tonnes compared to 6.85 million tonnes.

Margin growth is further supported by the company's operating leverage, contributing to its year-on-year margin improvement. Enhanced operational efficiency, likely achieved through synergy within the Adani Group, is another factor driving margin growth. Additionally, a moderation in fuel costs is expected to have a positive impact on ACC's margins.

Key aspects to watch for in ACC Ltd's Q2 FY24 report include updates on ongoing expansion projects and their progress, insights into the company's cost management strategies to maintain profitability, indications of a potential revival in demand for ACC's products, and any remarks or updates regarding mergers or partnerships within the company.

The company's pan-India presence has allowed it to establish a widespread footprint, reaching consumers across the country. Additionally, ACC has efficiently utilised its production capacity, resulting in high capacity utilisation.