ACC Q1 profit sinks 61% as planned maintenance shutdowns weigh on earnings
AI Market Summary
ACC reported a sharp Q1 profit contraction on lower volumes, planned maintenance shutdowns, higher service charges to parent Ambuja, and elevated imported fuel and logistics costs tied to West Asia tensions. Management expects peak fuel-cost pressure to land in seasonally weaker Q2, keeping near-term margin risk elevated, though FY27 demand growth guidance remains around 5%. The renewable captive power stake signals cost-mitigation efforts.
Impact level
● Low
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India’s cement maker ACC reported a 61% year-on-year drop in net profit for the first quarter of FY2024, and a 38.24% decline from the previous quarter. Revenue came in at Rs 5790 crore, down 7.76% from a year earlier, while cement sales fell to 10 million tonnes from 10.7 million tonnes. The company attributed the weaker performance to planned maintenance at key plants, higher service-related charges paid to parent Ambuja Cements, and elevated imported fuel costs. Management said the second quarter is expected to see the peak impact of higher fuel costs, while full-year demand is forecast to grow around 5%.
