India’s ACC Q3 revenue plunges on increased prices, stagnant volumes
BENGALURU, Jan 31 (Reuters) – Adani Group-owned ACC Ltd (ACC.NS) on Tuesday reported a greater than 60% drop in quarterly revenue on increased prices, flat cement costs and stagnant quantity progress.
Standalone revenue after tax fell to 1.10 billion Indian rupees ($13.46 million) for the three months to Dec. 31, from 2.80 billion rupees a 12 months earlier, whereas whole income from operations grew 7.4% to 45.37 billion rupees, the cement maker stated in an change submitting.
ACC’s whole bills rose 13.2% to 43.49 billion rupees through the quarter, pushed by increased freight, enter in addition to energy and gas prices.
Freight prices have been hit after the Indian Railways reintroduced a ‘busy season’ surcharge at 15% in October 2022, after a niche of three years.
Freight and gas bills often kind a minimum of 50% of whole bills for the Indian billionaire Gautam Adani-owned agency. Gasoline price is predicted to additional scale back within the coming months, the corporate stated in an announcement.
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Gross sales quantity stood at 7.7 million tonnes for the quarter, flat from a 12 months in the past.
In Himachal Pradesh, as a result of transport unions’ unworkable place on the freight charge and distribution mannequin, the corporate determined to quickly droop operations at its Gagal plant, ACC stated.
Indian ports-to-energy conglomerate Adani Group ventured into cement making final 12 months with its $10.5 billion acquisition of Holcim AG’s (HOLN.S) cement companies in India – Ambuja Cements Ltd (ABUJ.NS) and ACC.
Final week, high business participant Ultratech Cement Ltd (ULTC.NS) additionally reported a decline in quarterly revenue.
Ambuja Cements is predicted to report outcomes on Feb. 7.
ACC shares have fallen over 15% since final week when U.S. brief vendor Hindenburg Analysis’s scathing observe on Adani Group firms wiped away $65 billion in market capitalisation from its seven listed entities.
($1 = 81.7520 Indian rupees)
Reporting by Nandan Mandayam in Bengaluru; Modifying by Shailesh Kuber
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